2010 (11) TMI 189

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....envat credit of Central Excise duty on inputs and capital goods and service tax paid on the input service used in or in relation to the manufacture of finished products. It is alleged that in course of scrutiny of the appellant's records, the following irregularities were detected by the department. (a) during the period from October 2005 to July 2006, the appellants had received GTA service in respect of inward transportation of the various inputs and on the freight paid by them in respect of the inward transportation of inputs etc., they had paid service tax amounting to Rs. 2,97,517/- by utilizing the Cenvat credit. According to the department, since the GTA service is the input service and not the output service of the appellant....

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....cause notice dated 18th April 2007 was issued to the appellant for demand of the above mentioned amounts of the service tax alongwith interest and also for imposition of penalty on them under Section 76, 77, 78 of the Finance Act, 1994. The show cause notice was adjudicated by the Joint Commissioner vide order-in-original dated 21st April 2008 by which the service tax demands as made in the above-mentioned show cause notice were confirmed alongwith interest and penalties were imposed under Section 76, 77 as well as 78 of the Finance Act, 1994. Here it may be mentioned that so far as the amount of Rs. 2,97,517/- is concerned, the same had been paid alongwith interest through PLA on 4-9-06, that is to the prior to the issue of show cause noti....

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....alty under Section 76, 77 and 78. 2. Heard both the sides. 2.1 Shri V.R. Sethi, Advocate, the learned Counsel for the appellant pleaded that the appellant had correctly paid the service tax amounting to Rs. 2,97,517/- on inward freight of service tax amounting to Rs. 3,07,852/- on outward freight by utilizing Cenvat credit, that the Tribunal in the cases of Scan Synthetics Ltd. v. CCE, Jaipur-I reported in 2008 (12) S.T.R. 766 (Tri. - Del.), India Cements Ltd. v. CCE, Salem reported in 2007 (80) RLT 719 (CESTAT-Che.) = 2007 (7) S.T.R. 569 (T) = 2008 (223) E.L.T. 78 (T) and Bhushan Power & Steel Ltd. v. CCE, Cus. & ST, BBSR- II reported in 2008 (10) S.T.R. 18 (Tri. - Kolkata) has held that an assessee as recipient of the service o....