2014 (4) TMI 490

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..... :- Following decision of CCE vs. Nahar Industrial Enterprises Limited [2010 (5) TMI 608 - PUNJAB AND HARYANA HIGH COURT] - respondents were well within their right to utilize the Cenvat credit for the purpose of payment of service tax - Decided in favour of assessee. - S S Kang, M V Ravindran and H K Thakur, JJ. For the Appellant : Shri Hardik Modh, Adv. For the Respondent : Shri K .....

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..... tilize the CENVAT credit given to them for their manufacturing activities for payment of service tax on GTA service. The case of the Revenue is that the CENVAT credit could not be utilized for payment of CENVAT payable on services rendered and this should have been paid in cash 3. After hearing both sides, we find the dispute in this case pertains to the period prior to 01.3.2008 when there is .....

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..... respondents cannot pay the service tax from the Cenvat credit availed by them. But this argument has no force, because a perusal of para 2.4.2 of CBEC's Excise Manual of Supplementary Instructions shows that there is no legal bar to the utilization of Cenvat credit for the purpose of payment of service tax on the GTA services. 8. Apart from the above, even as per Rule 3(4) (e) of the Ce .....

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