2006 (6) TMI 30 - AT - Service Tax

Service Tax Departmental Clarifications C.B.E. & C. circulars are not binding on Commissioner(Appeal) Goods exempted but duty paid voluntarily and credit on inputs granted Order passed by Commissioner(Appeal) relying on Tribunal decisions as per judicial discipline Impugned order upheld

Summary

The appellate tribunal upheld the benefit of Modvat credit for inputs even though duty was voluntarily paid on fully exempt goods. The Commissioner (Appeals) is bound by higher tribunal decisions, not by CBEC Circulars. The Revenue's appeal was rejected, and the CCE (A) order was upheld.