2012 (10) TMI 924 - AT - Central Excise

CENVAT Credit - GTA Services - Revenue contends that appellant is not output service provider and hence cannot pay service tax on outward GTA services from their Cenvat Credit account - Held that - Assessee engaged in manufacturing of excisable goods and also deemed out-put service provider of GTA service, is entitled to utilize their Cenvat Credit for payment of Service Tax on GTA Services during the period prior to 19/04/2006 when the amendments were carried out to Cenvat Credit Rules - Commissioner has passed the order taking note of the amendment in Cenvat Credit Rules and in view of the statutory provisions - Following decision of Commr. Of C. Ex., Chandigarh vs. Nahar Industrial Enterprises Ltd. 2010 (5) TMI 608 - PUNJAB AND HARYANA HIGH COURT - Decided against Revenue.

Summary

Issues:
- Applicability of Cenvat Credit for payment of service tax on outward GTA services
- Interpretation of statutory provisions and case law regarding Cenvat Credit Rules

Analysis:
The judgment revolves around the issue of utilizing Cenvat Credit for paying service tax on outward GTA services. The appellant had paid service tax from their Cenvat Credit account, but the audit contended that the appellant, not being an output service provider, could not do so. The Adjudicating Authority demanded a sum along with interest and penalty. The key contention was whether the appellant, engaged in manufacturing excisable goods and deemed an output service provider of GTA services, could use Cenvat Credit for service tax payment before a specific amendment date.

The Tribunal, after considering the arguments and relevant case law, referred to a judgment by the Hon'ble High Court of Punjab and Haryana. The High Court had ruled that an assessee involved in manufacturing excisable goods and deemed an output service provider of GTA services could indeed utilize Cenvat Credit for service tax payment on GTA services before the specified amendment date. The Tribunal found the impugned order in line with statutory provisions and legal precedents, leading to the rejection of the Revenue's appeal.

In conclusion, the judgment clarifies the entitlement of an assessee, engaged in manufacturing excisable goods and deemed an output service provider of GTA services, to use Cenvat Credit for service tax payment on GTA services before a particular amendment date. The decision aligns with established legal principles and precedents, ensuring consistency in the application of Cenvat Credit Rules.