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TMI Blog2017 (10) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... ding against the decision of Punjab & Haryana High Court - the issue is required to be answered in favour of the assessee against the department - appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice, it is clear that while in the case of "input service", any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, is considered as "input service", in contrast to this, the Explanation given under "output service" in rule 2(1) of the CENVAT Credit Rules, thus deems that in the case of a person not proving taxable service or manufacture final products but liable for paying service tax, the service for which he is liable to pay service tax by reason section 62(2) of the Finance Act, 1994 shall be deemed as "output service". Thus, while rule 2(1) and 2(p) cover two classes of persons, the recipient of GTA service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he cash payment. The petitioners have produced on record a copy of a communication dated 21-11-2014 of the Assistant Commissioner, Central Excise, Division-II, Ahmedabad addressed to the Deputy Development Commissioner in connection with the request for "No Due Certificate" for debonding of Exit out of 100% EOU Scheme by one M/s. Alps Chemicals Pvt. Ltd., which clearly shows that the said unit has been permitted to discharge excise duty for indigenously procured duty paid raw materials lying in stock in their factory from the Cenvat credit account. In Paragraphs 9 and 14 of the memorandum of petition, the petitioners have clearly stated the names of various parties in whose cases the Ahmedabad Commissionerate has permitted payment of excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... others (supra), this court, in the facts of the said case has held that when different companies situated in different regions of the country, are granted a particular benefit, the petitioner therein which was situated in Gujarat, was also entitled to the similar treatment. As noted hereinabove, various assessees, including the assessees situated within the jurisdiction of Ahmedabad Commissionerate have been given benefit of paying the excise duty foregone from the Cenvat credit account. Under the circumstances, prima facie, there appears to be no reason to deny such benefit to the petitioners. In the light of the above discussion, the court is of the view that the matter requires consideration. Hence, issue rule returnable on 17th Decembe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws: Sec. 68. Payment of Service Tax:- (1) Every person providing taxable service to any person shall pay service tax at the rate specified in section 66 in such manner and within such period as may be prescribed. (2) Notwithstanding anything contained in subsection (1), in respect of any taxable service notified by the Central Govt. in the Official Gazette, the service tax thereon shall paid by such person and in such manner as may be prescribed at the rate specified in section 66 and all the provisions of this chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service. In view of the specific reference to service tax and the benefit allowed to a service provider, read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause a perusal of para 2.4.2 of CBEC's Excise Manual of Supplementary Instructions shows that there is no legal bar to the utilization of Cenvat credit for the purpose of payment of service tax on the GTA services. Apart from the above, even as per Rule 3(4)(e) of the Cenvat Credit Rules, 2004 the Cenvat credit may be utilized for payment of service tax on any output service. In the present case also, the service tax was paid out of the Cenvat credit on GTA services and hence the Respondents were well within their right to utilize the Cenvat credit for the purpose of payment of service tax. The Commissioner (Appeals) as well as the Tribunal have rightly held that the Respondents were entitled to pay the service tax from the Cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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