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TMI Blog2009 (8) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue denied the said credit and demanded service tax on ground that services of transportation of goods by road in goods carriage constitute input service for manufacture of excisable goods and assessee was not eligible to utilize accumulated cenvat credit for payment of service tax on freight and same had to be discharged by way of cash payment through TR-6. in the light of the decision of Andhra Pradesh Paper Mills Ltd. v. 2007 -TMI - 1909 - CESTAT, BANGALORE, held that- issue is settled in favour of assesse, thus the appeal filed by revenue are rejected. - ST/225, 492 OF 2008 - 1096 & 1097 OF 2009 - Dated:- 12-8-2009 - M.V. RAVINDRAN, JUDICIAL MEMBER AND P. KARTHIKEYAN, TECHNICAL MEMBER M. Ravi Chandran for the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such an order, respondents filed an appeal against the said order and ld. Commissioner (Appeals) has set aside the impugned order on the ground that in the appellant's own case, he had taken a view that the adjudicating authority erred in disallowing Cenvat credit. Aggrieved by such an order, revenue is in appeal before us. 3. Heard ld. DR. Ld. DR, who submits as under :— (i) The Commissioner (Appeals) ought to have examined the issue in the light of the provisions of rule 3(4) of Cenvat Credit Rules, 2004. In terms of rule 3(4) of the Rules, Cenvat credit can be utilized for payment of the following :— (a) Any duty of excise payable on any final product. (b) Any amount payable while removing (i) inputs as such or in partially proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat Credit Rules, 2004, 'output service' means any taxable service provided by the provider of taxable service to customer, client, subscriber, policyholder or any other person as the case may be and the expressions 'provider' and 'provided' shall be construed accordingly. Explanation.—For the removal of doubts it is hereby clarified that if a person liable for paying service tax does not provide any taxable service or does not manufacture final products, the service for which he is liable to pay service tax shall be deemed to be the output service. (iv) It was contended by Commissioner (Appeals) that Explanation to rule 2(p) of Cenvat Credit Rules, 2004 (which was omitted with effect from 19-4-2006) makes the service for which a person i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recipient of services and utilization of Cenvat credit for the payment discharge of Service Tax payable on transport service. 6. As regards the first issue, we find that the issue is no more res integra and covered by various decisions and more specifically the decision of this Bench in the cases of Andhra Pradesh Paper Mills Ltd. (supra) and RRD Tex (P.) Ltd.'s case (supra). 7. As regards the second issue, we find that this Bench in the case of Andhra Pradesh Paper Mills Ltd. (supra) held as under :— "4. We have heard both sides in the matter. According to the Adjudicating Authority, the inward transportation of goods by road service is an 'input service' as provided in clause (ii) of rule 2(l) of the Cenvat Credit Rules, 2004. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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