9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 493 - AT - Service TaxCENVAT credit on the GTA services upto 18.04.2006 - Held that - The issue is no more res integra relying on Hon ble High Court of Punjab & Haryana in the case of CCE Chandigarah Vs. Nahar Industrial Enterprises Ltd 2010 (5) TMI 608 - PUNJAB AND HARYANA HIGH COURT there is no legal bar to the utilisation of Cenvat credit for the purpose of payment of service tax on the GTA services. Even as per Rule 3(4)(e) of the Cenvat Credit Rules, 2004, the Cenvat credit may be utilized for payment of service tax on any output service - in favour of assessee.
Issues:
1. Utilization of CENVAT Credit for payment of Service Tax on GTA services. 2. Interpretation of Rule 2(p) of the CCRs, 2004. 3. Applicability of the explanation to Rule 2(p) and its deletion. 4. Definition of output service under Rule 3(4) of the Cenvat Credit Rules, 2004. Analysis: 1. The appeal filed by the Revenue challenged the Order-in-Appeal allowing the respondent to use CENVAT amount for Service Tax on GTA services until a specific date. The Revenue contended that the respondent, being a manufacturer of final products, was not entitled to pay Service Tax through CENVAT Credit account. The Commissioner (Appeals) concluded that the explanation to Rule 2(p) was omitted from a particular date, affecting the payment of Service Tax. The Commissioner (Appeals) reasoned that the respondent was eligible for payment from CENVAT Credit account until a specific date but not thereafter. The issue was settled by referring to judgments by the Hon'ble High Court of Punjab & Haryana, allowing the use of CENVAT Credit balance for Service Tax on GTA services until a certain date. 2. The interpretation of Rule 2(p) of the CCRs, 2004 was crucial in determining the eligibility of the respondent to use CENVAT Credit for Service Tax payment. The Commissioner (Appeals) and the Tribunal analyzed the provisions and the effect of the explanation to Rule 2(p) on the respondent's case. The legal fiction created by the explanation was a point of contention, leading to a detailed examination of the relevant rules and notifications. 3. The deletion of the explanation to Rule 2(p) through a notification was a significant factor in deciding the payment of Service Tax in cash versus through CENVAT Credit account. The Commissioner (Appeals) and the Tribunal scrutinized the implications of this deletion on the respondent's liability and the method of payment for GTA services. The timing of the deletion and its impact on the utilization of CENVAT Credit were key aspects of the judgment. 4. The definition of output service under Rule 3(4) of the Cenvat Credit Rules, 2004 played a vital role in determining the eligibility of the respondent to utilize CENVAT Credit for Service Tax on GTA services. The Tribunal and the Commissioner (Appeals) examined the concept of output service in the context of taxable services provided by the respondent. The application of CENVAT Credit for payment of Service Tax hinged on the interpretation of output service and the provider's liability to pay Service Tax. In conclusion, the judgment analyzed the issues comprehensively, considering legal provisions, notifications, and precedents to determine the eligibility of the respondent to use CENVAT Credit for payment of Service Tax on GTA services. The decision was based on a thorough examination of the rules and their application to the specific circumstances of the case, ultimately upholding the respondent's right to utilize the CENVAT Credit balance within the specified period.
|
