TaxTMI 
TaxTMI 
2012 (10) TMI 558
X X X X Extracts X X X X
X X X X Extracts X X X X
....final products from the factory. They were also paying service tax on the GTA services by virtue of the relevant provisions of the Service Tax Rules, 1994. They took CENVAT credit of the service tax so paid and utilised the same for payment of duty of excise on their final products. A dispute arose between them and the department as to whether, for payment of service tax on GTA services, they could utilise CENVAT credit of the service tax paid on other input services and duty of excise paid on inputs, such input services and inputs having been utilised in, or in relation to, manufacture of final products. This dispute made its way into a show-cause notice wherein service tax of Rs. 2,00,274/- (education cesses included) was demanded as serv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vice. According to the learned Superintendent (AR), the GTA service on which the respondent paid service tax through utilisation of CENVAT credit was only an input service vis-a-vis manufacture and clearance of the final products. The learned Superintendent (AR) has relied on a few decisions also, cited below : (i) ITC Ltd. vs. Commissioner of C. Ex., Guntur [2011 (23) S.T.R. 41 (Tri.-Bang.)] (ii) CCE, Ghaziabad vs. M/s BPL Display Devices Ltd. [CESTAT-DEL] (iii) UNI Deritend Ltd. vs. Commissioner of Cus. & C. Ex., Nagpur [2012 (25) S.T.R. 475 (Tri.-Mumbai)] (iv) Alstom Projects India Ltd. vs. Commissioner of C. Ex., Coimbatore [2008 912) S.T.R. 23 (Tri.-Chennai)]. 3. The learned counsel for the respondent refers to a few definitions g....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eriod of dispute and, consequently, be entitled to utilise CENVAT credit for payment of service tax thereon. The following decisions have been cited in support of these arguments : (i) Commissioner of C. Ex., Chandigarh vs. Nahar Exports Ltd. [2008 (9) S.T.R. 252 (Tri.-Del.)] (ii) Commissioner of C. Ex., Chandigarh vs. Nahar Industrial Enterprises Ltd. [2012 (25) S.T.R. 129 (P & H)] (iii) Shree Rajasthan Syntex Ltd. vs. Commissioner of C. Ex., Jaipur [2011 (24) S.T.R. 670 (Tri.-Del.)] (iv) Final Order No. 838/2011 dated 11.11.2011 in Service Tax Appeal No. 1583 of 2010 (M/s Hind Spinners vs. Commissioner of C. Ex., Bhopal). 4. I have given careful consideration to the submissions. The period of dispute in this case is from April 2007 t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ice (the taxable service referred to in Section 65 (105) (zzp) of the Finance Act, 1994) was specifically excluded from the definition of output service with effect from 1.3.2008, the said service should be held to have had been included in the definition prior to the said date. In other words, when the respondent was paying service tax on GTA service, they were doing so on an output service and, therefore, they were entitled to utilise CENVAT credit for payment of such tax. The definition of person liable for paying service tax and the definition of provider of taxable service given under Rule 2 (q) & (r) respectively seem to be supportive of this argument. It is not in dispute that the respondent was liable for paying service tax on GTA s....