2011 (6) TMI 299 - AT - Service Tax

Demand of service tax and imposition of penalty - Recipient of GTA services - dispute relates to use of cenvat credit account for the purpose of paying service tax on GTA services availed by them as recipient - issue decided in favour of the assessee by Hon ble High Court in the case of Nahar Industrial Enterprises Ltd (2010 -TMI - 207889 - PUNJAB AND HARYANA HIGH COURT) holding that the recipient of GTA services can utilize cenvat credit account for paying service tax.

Summary

The appeal was against the order of the Commissioner (Appeals) regarding payment of service tax on GTA services using cenvat credit account. The Commissioner (Appeals) had upheld the demand for service tax and penalty. The Tribunal set aside the order, allowing the appeal in favor of the assessee based on a similar case decided by the High Court.