TaxTMI 
TaxTMI 
2008 (2) TMI 810
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....rected the appellants to pay interest on the amount so confirmed and imposed a penalties under Sections 76 and 78 of the Finance Act, 1994. Aggrieved by the order of the Assistant Commissioner, the appellants filed the present appeal. 3. M/s. Super Spinning Mills Limited, A Unit, Kirikera, Hindupur (hereinafter referred to as the appellants) are manufacturers of cotton yarn and are registered for service tax under the category of Transport of Goods by Road Service. A Show cause Notice was issued to the appellants alleging that : * as per Rule 3(4)(e) of Cenvat Credit Rules, 2004, the Cenvat credit may be utilised for payment of Service Tax on any output service. * &nbs....
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....p; As per Rule 3(4) of Cenvat Credit Rules, 2004, Cenvat credit can be utilized towards the payment of service tax on output Service only. * Rule 2(p) of Cenvat Credit Rules, 2004 and Explanation thereof which was in vogue till 18-4-2006, vide its explanation had given deemed status of output service for the service for which one is liable to pay service tax if he does not provide any taxable service or does not manufacture final products. The above explanation was omitted by Notification No: 8/2006-C.E. (N.T.), dated 19-4-2006. * Hence the status of deemed output service for the payment of service tax paid by the assessee as a person liabl....
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....ccountant, Sri K. Siva Rajan appeared for personal wearing on 21-2-08 and reiterated the submissions already made vide grounds of appeal. The appellants, in their grounds of appeal contended that : * Section 2(7) of the Finance Act, 1994 (Act) defines 'appellant' to mean a person liable to pay the service tax and includes his agent. * Section 68(2) of the Act provides that in respect of any taxable service notified by the Central Government in Official Gazette, the service tax thereon shall be paid by such person 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 ....
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....hey were allowed to take cenvat credit of service tax paid on the input services received by them. * Rule 2(p) of the Cenvat Rules defines 'output service' means any taxable service provided by the provider of taxable service, to a customer, client, subscriber, policyholder or any other person, as the case may be, and the expressions 'provider' and 'provided' shall be construed accordingly. * Since the terms 'provider' and 'provided' shall be construed accordingly, and since the definition of provider of taxable service includes a person liable to pay tax, the service received by them is an output service. * ....
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....e u/s 2(r) has been left untouched. No other clause has been introduced or restriction has been placed. An interpretation that makes any part of the statute redundant is to be avoided. * The removal of the explanation to Rule 2(p) does not affect the meaning of the term "output service" since it was only clarificatory. * The explanation starts with the words "For the removal of doubts it is hereby clarified." Therefore, it is explicit that the explanation was only clarificatory and explaining what was already forming part of the main definition of output service. Therefore, even without the explanation, the service for which the appellant is liable to ....
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....s of the case and the submissions made by the appellant. The appellant is a service receiver of GTA Service. However, they are liable to pay service tax for the service received by them in terms of Section 68(2) of Finance Act, 1994, read with Rule 2(1)(d)(v)(a) of Service Tax Rules, 1994. During the period April, 2006 to September, 2006, the appellant has discharged their tax liability on the receipt of the above services by payment through their Cenvat credit account. The same has been objected to by the department on the ground that being the service receiver, they cannot utilize the Cenvat credit for payment of tax on service received. Duty, interest and penalty have been confirmed/charged/imposed for the same. 7. Factually the ....