2010 (6) TMI 309 - AT - Central Excise

Goods Transport Agency services - availed Cenvat/Modvat Credit - objection raised by Revenue - Assessee paid the amount in cash and subsequently took the credit of said amount suo motu - Revenue s objection is that such suo motu credit was not in accordance with the law and accordingly, proceedings were initiated for recovery of the amount - Held that - Recovery of the credit availed by the appellant which was earlier utilized for payment of service tax on the same services would amount to double payment - case in assessees favour so as to allow the stay petition

Summary

The Appellate Tribunal CESTAT, Ahmedabad ruled in favor of the appellant who had paid service tax using Modvat Credit, then paid in cash, and later took credit suo motu. The Tribunal found that the appellant had paid the tax in cash and recovering the credit used earlier would result in double payment. The stay petition was allowed unconditionally.