2016 (12) TMI 728 - AT - Service Tax

Reverse charge mechanism - amount of commission paid to overseas agent - Section 66A of the Finance Act, 1994 - the service tax had to be paid in cash and payment thereof by utilising the cenvat credit was not permissible - Held that - I find that the issue as to whether service tax can be paid from cenvat account by the appellant under reverse charge mechanism is no more res-integra, in view of the decision of this Tribunal in the case of the appellant Commnr. of Central Excise, Jaipur Versus M/s. Shree Rajasthan Syntex Ltd. & Others 2015 (3) TMI 1241 - CESTAT NEW DELHI where the Tribunal held that cenvat credit can be utilized for payment of service tax payable under reverse charge mechanism in respect of services received from abroad - appeal allowed - decided in favor of appellant-assessee.

Summary

The appeal was filed against a service tax demand on commission paid to overseas agent. The Tribunal ruled that cenvat credit can be used for service tax under reverse charge mechanism. The appeal was allowed in favor of the appellant.