2009 (12) TMI 182

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..... n of those inputs by road to the factory. The Department’s view is that at the time of removal of the inputs as such, as per the provisions of rule 3(5) of the Cenvat Credit Rules, the appellant should also have reversed the credit of service tax on the GTA service availed for road transportation of the goods up to the factory. On this objection by the Department, the appellant reversed the credit of service tax on the GTA service. The Assistant Commissioner vide Order-in-original confirmed the demand of service tax credit along with interest and imposed penalty of equal amount on the appellant under rule 15(2) of the Cenvat Credit Rules, 2004. On appeal to Commissioner (Appeals), the Commissioner (Appeals) vide order-in-appeal upheld the A .....

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..... cleared those inputs as such but as per the provisions of rule 3(5) of the Cenvat Credit Rules reversed only the credit of Central Excise Duty. The Department's view is that at the time of removal of the inputs as such, as per the provisions of rule 3(5) of the Cenvat Credit Rules, the appellant should also have reversed the credit of service tax on the GTA service availed for road transportation of the goods up to the factory. On this objection by the Department, the appellant reversed the credit of service tax on the GTA service. The Assistant Commissioner vide Order-in-original dated 3-10-2007 confirmed the demand of service tax credit along with interest and imposed penalty of equal amount on the appellant under rule 15(2) of the Cenva .....

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..... vice tax including education cess paid on the transportation charges for bringing those goods up to the factory (sic) is also required to be reversed. In view of this, he pleaded that the impugned order is correct and does not merit any interference. 4. I have carefully considered the submissions from both the sides and perused the records. 5. The provisions of sub-rule (5) of rule 3 of Cenvat Credit Rules, 2004 are reproduced below:- "When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respec .....

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