9911796707
TMI Blog2007 (9) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants were registered for payment of Service Tax on Transport of Goods by Road Services and were discharging Service Tax in respect of input services. The Original authority proceeded against the assessee for recovery of Service Tax on the ground that the assessees are not eligible for Cenvat credit for the payment of Service Tax and Education Cess on GTA Services. The assessee contested the issue and submitted that Service Tax paid on input goods and input services can be utilized for payment of Service Tax and also for Excise Duty on the goods manufactured. The findings recorded by the Commissioner (Appeals) in the Order-in-Appeal No. 273/2006-C.E. dated 7-9-2006, (in Appeal No. ST/335/2006) are noted herein below :- "I have gone throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le services even if they discharge their Service Tax liability under Section 68(2) are not entitled to avail credit of the Service Tax paid on taxable services. I therefore conclude that availing of credit on Service Tax on Goods Trans port Service paid by the recipient of such a service is not available unless the person concerned is also providing some other output services or is manufacturing dutiable goods. In the present case the appellants are manufacturing dutiable goods on which Cenvat credit taken on input service as well as input goods is available for utilization. I further find that there is no one to one correlation between credit availed and utilized. It is therefore clear that above referred Circular does not bar the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chandigarh v. M/s. Nahar Industrial Enterprises Ltd. [2007 (7) S.T.R. 26 (Tribunal) = 2007-TIOL (ii) The India Cements Ltd. v. CCE, Salem [2007 (7) S.T.R. 569 (Tribunal) =2007-TIOL-645-CESTAT-MAD He submits that the issue has been settled in these matters in the assessee's favour and therefore the appeals are to be rejected. 3. I have carefully considered the submissions made by both the sides. I notice from both the rulings that the Tribunal's Delhi and Chennai Benches have examined the issue and held that the credit can be utilized for payment of Service Tax. The Revenue's appeal has been rejected and the party's appeal has been allowed in both the cited cases. The Commissioner's (Appeals) order cited supra is correct in law, in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
