9911796707
TMI Blog2007 (11) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Salem, manufacturers of VSF yarn, poly viscose yarn and viscose yarn utilized the Cenvat credit of Rs. 2,54,843/- to pay service tax and education cess on Goods Transport Agency (GTA) service availed for outward transportation of its finished goods. In the impugned order, the Commissioner (Appeals) has affirmed the above amount and imposed equal amount of penalty under Section 76 of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y." As per the Explanation to the above rule, if a person who does not render any service pays service tax as a deemed service provider, the said service will be treated as output service provided the said person does not manufacture any finished goods. In the instant case, the assessee being a manufacturer of finished goods, the GTA service availed could not be treated as an output service. More ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the statutory provisions. The order deserved to be sustained. 4. After hearing both sides the decision was reserved to enable the ld. Counsel to produce copies of the orders cited. The orders have not been furnished yet. The appeal, however, is taken up for decision. I have considered the records and the rival submissions. The appellants have utilized credit earned for paying service tax on G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e treated as output service in view of the above explanation. This is also the ratio of the judicial authorities relied on by the appellants. In view of this position, the appellants correctly utilized the Cenvat credit for discharging tax due on GTA service availed by it. Accordingly, the appeal is allowed. The stay application also gets dismissed. (Pronounced in the open Court on 23-11-2007) & ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
