2018 (8) TMI 1101

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..... he present case, the appellant is paying service tax on reverse charge mechanism of GTA service. Since, statutorily, the appellant is required to pay service tax, therefore, he is deemed service provider. Consequently, the GTA service for the appellant, is a deemed output service. Accordingly, they are entitled for utilization of Cenvat credit for payment of service tax on GTA. After insertion .....

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..... in the impugned order. He submits that Cenvat credit can be utilized for payment of service tax only in respect of output services whereas GTA, for the assessee, in the present case, is input service. Therefore, service tax payment of such GTA service cannot be made from the Cenvat credit availed by the appellant. He further submits that with a specific amendment in the Cenvat Credit Rules, vide .....

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..... ingly, they are entitled for utilization of Cenvat credit for payment of service tax on GTA. Explanation was inserted in sub Rule 4 of Rule 3, which reads as under:- Explanation Cenvat credit cannot be used for payment of service tax in respect of service where the person is liable to pay tax as the service recipient. With this explanation, a specific bar was imposed for utilization o .....

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