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TMI Blog2018 (2) TMI 1391X X X X Extracts X X X X X X X X Extracts X X X X ..... is? - Held that: - utilization of CENVAT Credit for the purpose of payment of service tax on the GTA services is concerned, the appellant is covered by the ruling of Hon’ble Delhi High Court in the case of CST vs. Hero Honda Motors Ltd. [2012 (12) TMI 734 - DELHI HIGH COURT], where it was held that there is no legal bar to the utilisation of Cenvat credit for the purpose of payment of service tax on the GTA services. Penalties imposed under Rule 15 of Cenvat Credit Rules, 2004 (Rule 13 of the Cenvat Credit Rules, 2002) read with Rule 25 of Central Excise Rules, 2002, read with Section 11AC of Central Excise Act, 1944 are set aside. Appeal allowed - decided in favor of appellant. - Appeal No. E/612/09 - A/85294/2018 - Dated:- 18-1-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilize the same in accordance with Cenvat Credit Rules, 2004. However during the period prior to 10.09.2004 when Service Tax Credit Rules, 2002 were in force, the credit of service tax paid on input service was available only when such input services were consumed in or in relation to output services. In other words, any credit of service tax paid on input services consumed in the manufacture of excisable goods was not admissible. It was further observed that the appellant had availed CENVAT Credit on various input services like; Advertisement, Architect, Banking Finance, cable service, Cargo handling etc. and provided output services like; Mandap Keeper, Consulting Engineers and Repairs Maintenance. From this, it appeared that most o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transferring the service tax credit as per the service tax Register to the CENVAT Credit Register maintained by different plants on the basis of actual and in the ratio of such actually identifiable credit. It also attached a statement giving details of the credits transferred to the CENVAT Credit Register. 4.1 Learned Counsel also points out that another show-cause notice was issued by the learned Commissioner dated 12.04.2004 objecting to utilization of CENVAT Credit for payment of service tax liability on GTA service under reverse charge mechanism. Thus, the Revenue was fully aware of the status of the facts. Further it is pointed out by the impugned order-in-original, from para 7, where it has been observed that I find that the Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y limitation. 6.1 So far as the second issue is concerned, utilization of CENVAT Credit for the purpose of payment of service tax on the GTA services is concerned, the appellant is covered by the ruling of Hon ble Delhi High Court in the case of CST vs. Hero Honda Motors Ltd. supra. 6.3 So far as the other ground(s) are concerned, we have not touched as the same are not pressed. 7. To sum up (a) Service Tax demand of ₹ 59,97,695/- is set aside. (b) Service tax demand of ₹ 2,99,95,111/- is set aside. (c) Penalties imposed under Rule 15 of Cenvat Credit Rules, 2004 (Rule 13 of the Cenvat Credit Rules, 2002) read with Rule 25 of Central Excise Rules, 2002, read with Section 11AC of Central Excise Act, 1944 are set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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