2007 (12) TMI 153 - AT - Service Tax

Whether the Cenvat Credit can be utilized for payment of Service Tax by service recipient - objection of the revenue is that, the respondents did not provide any output service and it is the Goods Transport Agency , which provided the output service, and hence Cenvat Credit cannot be utilized for this purpose - held that Cenvat Credit can be utilized for payment of Service Tax on Goods Transport Services by service recipient revenue s appeal rejected

Summary

The Appellate Tribunal CESTAT, New Delhi ruled that Cenvat Credit can be used for payment of Service Tax by the service recipient for 'Goods Transport Services', based on previous decisions. The objection raised by the revenue was rejected, following the decision in the case of CCE v. Nahar Industrial Enterprises Ltd. The appeal was rejected in favor of the assessee.