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TMI Blog2014 (10) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... he cenvat credit availed by an assessee - From the above provision for utilisation of Cenvat credit, it provides, amongst others, the Cenvat credit can be utilised for payment of service tax on output service. As discussed in above para the GTA service though received by the respondent but paid service tax thereoupon, the said GTA service is an 'output service'. Therefore the utilisation of Cenvat credit for payment of service tax on GTA made by the respondent is legal and correct - following the Hon'ble Punjab & Haryana High Court judgment in Nahar Industrial case [2010 (5) TMI 608 - PUNJAB AND HARYANA HIGH COURT] held that prior to 01.03.2008 the payment of service tax on GTA by utilising Cenvat credit is legal - Decided against Revenue.< ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Tribunal which is even submitted by the revenue in their grounds of appeal. The relevant para referred is reproduced below: "Thus, Cenvat credit can be utilized for payment of any duty of excise on any final products or for payment of service tax on any output service and not for input service. Hence, DPL is required to pay this service tax in cash. It is submitted that Hon'ble CESTAT in Panchmahal Steel Ltd. Vs. Commissioner of Central Excise & Service Tax, Vadodara-II - {2008(12) S.T. R. 447 (Tri. - Ahmd)} has referred the issue to the larger bench. Now the Larger Bench has answered the reference in the case of Panchmahal Steel Ltd. Vs. Commissioner of Central Excise & Service Tax, Vadodara (supra) according to which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny duty of excise on any final product; or (b) ……………………….. (c) ……………………….. (d) ……………………….. (e) Service tax on any output service 5.4 From the above provision for utilisation of Cenvat credit, it provides, amongst others, the Cenvat credit can be utilised for payment of service tax on output service. As discussed in above para the GTA service though received by the respondent but paid service tax thereoupon, the said GTA service is an 'output service'. Therefore the utilisation of Cenvat credit for payment of service tax on GTA made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f payment of service tax on the GTA services. 8. Apart from the above, even as per Rule 3(4) (e) of the Cenvat Credit Rules, 2004, the Cenvat credit may be utilized for payment of service tax on any output service. 9. In the present case also, the service tax was paid out of the Cenvat credit on GTA services and, hence, the respondents were well within their right to utilize the Cenvat credit for the purpose of payment of service tax. The Commissioner (Appeals) as well as the Tribunal have rightly held that the respondents were entitled to pay the service tax from the Cenvat credit." 5. We find that the other Hon'ble High Courts have also taken the same view. In view of the above, the question referred to is answered in favou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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