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TMI Blog2015 (12) TMI 1452X X X X Extracts X X X X X X X X Extracts X X X X ..... e the service tax under reverse charge mechanism, then it has to be conclude that he is provider of taxable service who provides output service. In our view, the lower authorities were incorrect in interpretation of the provisions and holding that appellant could not have utilised Cenvat Credit for discharge of service tax. - impugned order is incorrect and unsustainable. The impugned order is set aside - Decision in the case of TATA AIG Life Insurance (2014 (4) TMI 637 - CESTAT MUMBAI) and Panchmahal Steel Ltd. (2014 (12) TMI 876 - GUJARAT HIGH COURT) followed - Decided in favour of assessee. - Appeal No. ST/283/11 - - - Dated:- 5-8-2015 - M. V. Ravindran, Member (J) And C. J. Mathew, Member (T) For the Appellant : Ms Aparna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... She produces the copies of the said case law. 4. Learned Departmental Representative would submit that the service on which the service tax is discharged is on the basis of reveres charge mechanism. He would submit that appellant has not provided any output service but have paid the service tax as a deemed output service provider. He would submit that the impugned order is correct and relies upon the Tribunal's order in the case of Adishiv Forze Ltd.-2008 (9) STR 534. 5. We have considered the submission made at length by both sides and perused the records. 6. The issue involved in this case is whether the appellant is correct in utilizing the credit balance in Cenvat Account for discharging the service tax liability which is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions made by both sides. 5.1 Prior to 19-4-06, Rules 2(p), (q) and (r) read as follows :- (p) output service means any taxable service provided by the provider of taxable service, to a customer, client, subscriber, policy holder or any other person, as the case may be, and the expressions 'provider' and 'provided' shall be construed accordingly. Explanation - For removal of doubt 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. (q) person liable for paying Service Tax has the meaning as assigned to it in claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices used for providing the output service. Consequently, there is no bar in utilization of Cenvat Credit for payment of Service Tax on Insurance Auxiliary Service by the appellants. This is the settled legal position as can be seen from the decisions of the Hon'ble Punjab Haryana High Court and Hon'ble Delhi High Court in the case of Nahar Industrial Enterprises Ltd., Nahar Spinning Mills and Auro Spinning Mills Hero Honda Motors Ltd. (supra). The Hon'ble Delhi High Court rejected the contention of the Revenue that recipient of Goods Transport Agency service has to discharge Service Tax liability in cash as they were only recipient of Service and not the provider on the ground that a fiction has been created under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... envat Credit Scheme and, therefore, the demands confirmed against the appellants for recovery of Cenvat Credit availed by them for discharging Service Tax liability on Insurance Auxiliary Service is clearly unsustainable and accordingly, we set aside the same. 10. We also note that the above said views of the tribunal are endorsed by the Hon'ble High Court of Gujarat in another case of Panchmahal Steel Ltd. (supra). We reproduce the relevant paragraph. 8 Rule 3 of the Cenvat Credit Rules, 2004 pertains to Cenvat credit. Sub-rule (1) thereof allows the manufacturer or purchaser of final products or provider of output service to take credit of Cenvat of various duties specified therein. Sub-rule (4) of Rule 3 of the said Rules p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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