2009 (11) TMI 150 - AT - Service Tax

Cenvat Credit- output services- Whether Cenvat credit can be utilized for discharging service tax due on GTA services? In the light of the various decisions held that Cenvat credit can be utilized, thus set aside the impugned order upholding the demand of service tax and education cess together with interest and imposed penalty, and allow the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants, stating that CENVAT credit can be used to pay service tax on GTA service. The decision was based on earlier Tribunal rulings, including the cases of India Cements Ltd. v. CCE and Pallipalayam Spinners (P.) Ltd. v. CCE. The impugned order demanding service tax, education cess, interest, and penalty was set aside, and the appeal was allowed.