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2015 (12) TMI 753 - AT - Service TaxUtilisation of Cenvat credit - Goods Transport Agency service - Held that - Issue is now finally settled by the Larger Bench of the Tribunal in the case of Panchmahal Steel Ltd. 2014 (4) TMI 490 - CESTAT AHMEDABAD wherein one of us was a Member. It is also brought to our notice that Revenue had challenged this Larger Bench decision before the Hon ble High Court of Gujarat. The Hon ble High court by an order dated 18.12.2004 (2014 (12) TMI 876 - GUJARAT HIGH COURT) dismissed the appeal filed by the Revenue holding that the Larger Bench decision was correct decision. - impugned orders are liable to be set aside - Decided in favour of assessee.
Issues: Utilization of Cenvat credit for service tax liability on Goods Transport Agency service.
The judgment by the Appellate Tribunal CESTAT Mumbai pertains to appeals against Order-in-Appeal No. SB/39/LTU/MUM/2009. The appeals were consolidated as they involved the same assessee and issue. The main issue revolved around the utilization of Cenvat credit for the payment of service tax liability on the Goods Transport Agency service between May 2007 and September 2008. The Tribunal noted that the issue had been conclusively settled by a Larger Bench decision in the case of Panchmahal Steel Ltd. The Tribunal referenced the relevant provisions of the Cenvat Credit Rules, 2004, specifically Rule 3, which allows for the utilization of Cenvat credit for the payment of service tax. The Tribunal highlighted that previous decisions by the Punjab and Haryana High Court and Delhi High Court supported this interpretation. Consequently, the Tribunal set aside the impugned orders and allowed the appeals with any consequential relief. The judgment reaffirmed the legality of utilizing Cenvat credit for discharging service tax liability, as established by the Larger Bench decision and upheld by the High Court. In conclusion, the Appellate Tribunal CESTAT Mumbai's judgment addressed the issue of utilizing Cenvat credit for service tax liability on the Goods Transport Agency service. The Tribunal relied on a previous Larger Bench decision and the subsequent High Court ruling to confirm the legality of using Cenvat credit for such payments. The judgment set aside the impugned orders and allowed the appeals, providing clarity on the permissible use of Cenvat credit in discharging service tax obligations.
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