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TMI Blog2015 (1) TMI 1465X X X X Extracts X X X X X X X X Extracts X X X X ..... , as it is not disputed that the respondents are paying service tax, the services rendered by the respondents on that count are deemed to be output service as the other conditions therein are satisfied. On perusal of the order passed by the Commissioner (Appeals), Central Excise Customs, Goa, dated 16th March, 2007, it is seen that the Commissioner has taken a view that as per Explanation to Rule 2(p) of the Cenvat Credit Rules if a person liable for payment of service tax does not provide any taxable service, the service for which he is liable to pay service tax shall be deemed to be the output service. The Commissioner has further found that on harmonious reading of various rules of Cenvat Credit Rules and Service Tax Rules, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2004, the respondents are not entitled for such a credit, as they do not provide any output service. The learned Counsel further points out that the activities carried out by the respondents do not come within the meaning of 'output service' as provided in Rule 2(p) of the Cenvat Credit Rules, 2004. The learned Counsel has, thereafter, taken us through the order of CESTAT to point out that the provisions have been misconstrued to come to the conclusion that the respondents were entitled for such credit. 3. On the other hand, Ms. P. Kamat, learned Counsel appearing for the respondent has pointed out that it is not in dispute that the respondents are paying service tax for the services rendered by them and, as such, the Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation to Rule 2(p) of the said Rules would be applicable to the facts of the present case. On plain reading of the said Explanation, as it is not disputed that the respondents are paying service tax, the services rendered by the respondents on that count are deemed to be output service as the other conditions therein are satisfied. On perusal of the impugned order passed by the Tribunal, we find that the Tribunal has rightly taken a view that there is no restriction for utilization of the Cenvat Credit by the manufacturing unit towards the payment of service tax. On perusal of the order passed by the Commissioner (Appeals), Central Excise Customs, Goa, dated 16th March, 2007, it is seen that the Commissioner has taken a view that as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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