2009 (7) TMI 1072 - AT - Service Tax

Summary

Issues:
1. Service tax confirmed on assessees for paying from Cenvat credit.
2. Non-filing of declaration from goods transport agency.
3. Levying of interest on the assessees.

Analysis:

1. Service Tax Payment from Cenvat Credit:
The Tribunal referred to the case of Mahindra Ugine Steel Co. Ltd. v. CCE, Raigad, where it was established that utilizing Cenvat credit for service tax payment on output services is permissible. This decision aligned with the precedent set by India Cements Ltd. v. Commissioner, confirming the legality of using Cenvat credit for such payments. Consequently, the Tribunal ruled in favor of the appellants on this ground, allowing the appeal and providing consequential relief.

2. Non-filing of Declaration:
Regarding the absence of a declaration from the goods transport agency, the appellants' counsel acknowledged that the declaration existed but was not presented to the authorities during the adjudication process. The Tribunal accepted the request to remit the case back to the lower authorities for consideration of the declaration. It instructed the adjudicating authority to verify the declaration's contents, specifically confirming that the goods transport agency did not benefit from Notification No. 12/03. The Tribunal emphasized the need for appropriate orders to be passed in compliance with the law upon reevaluation of the declaration.

3. Levying of Interest:
The appellants contended that no interest should be imposed on them as the payment was made from the Cenvat credit account, citing the Tribunal's earlier order. The Tribunal agreed with this argument and consequently set aside the interest, thereby granting relief to the appellants. The appeal was then concluded in favor of the appellants based on the aforementioned considerations.

In conclusion, the Tribunal's judgment addressed the issues of service tax payment from Cenvat credit, non-filing of the declaration from the goods transport agency, and the levying of interest on the assessees. By referencing relevant legal precedents and considering the submissions made by the appellants, the Tribunal provided a comprehensive analysis leading to the resolution of the case in favor of the appellants.