9911796707
TMI Blog2012 (12) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... Jha for the Petitioner. P.K. Ram for the Respondent. ORDER S. Ravindra Bhat, J. - In these appeals, the question which arises for consideration is whether the Tribunal fell into error in holding that in terms of Section 68(2) of the Finance Act, 1994, the respondent/assessee was entitled to claim that it had paid or adjusted service tax dues on the basis of CENVAT credit instead of cash. 2. The brief facts are that the assessee i.e. respondent in this case was issued a show cause notice on 30.1.2006 proposing recovery of dues (including interest) and penal action in terms of Finance Act, 1994. The Revenue took action on the basis that the assessee had wrongly claimed to have paid service tax on goods transport agency under Section 68(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the impugned order. It is stated at the outset that the view expressed by the Tribunal has been carried in appeal to the Supreme Court in Special Leave Petitions. 4. It appears that the Revenue had challenged the CESTAT's order in Nahar Industrial Enterprises Ltd. (supra) before the Punjab and Haryana High Court and advanced various contentions. The question of law framed by that High Court was identical to what was urged in the present case. The High Court by its order reported as CCE v. Nahar Industrial Enterprises Ltd. [2012] 35 STT 391 held as follows:- "6. Learned counsel for the revenue has contended that the respondents cannot pay the service tax from the Cenvat credit availed by them. But this argument has no force, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removed as such; or (d) an amount under sub-rule (2) of rule 16 of Central Excise Rules, 2002; or (e) service tax on any output service:" S. 68 (1) and (2) of the Finance Act, 1994 read as follows: Sec.68. Payment of Service Tax: - (1) "Every person providing taxable service to any person shall pay service tax at the rate specified in section 66 in such manner and within such period as may be prescribed. (2) Notwithstanding anything contained in sub-section (1), in respect of any taxable service notified by the Central Govt. in the Official Gazette, the service tax thereon shall paid by such person and in such manner as may be prescribed at the rate specified in section 66 and all the provisions of this chapter shall apply ..... X X X X Extracts X X X X X X X X Extracts X X X X
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