2013 (1) TMI 323

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.... of LM Coke. They are also registered with the Department for availing the service of Goods Transport Agency (GTA) in relation to inward as well as outward freight. Being the consignor/consignee, they had discharged the service tax liability on the GTA service availed by them during the period, April, 2007 to March, 2008. During the said period, they had availed the CENVAT Credit on the service tax of Rs.3,93,054/- paid on GTA service (inward freight) and utilized the same towards the payment of service tax on the liability of GTA service arising out of the outward freight service. A show cause notice dated 13.10.2008 was issued to them for recovery of service tax short paid by wrongly utilizing CENVAT Credit in discharging their service ta....

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....rd freight) treating it as output service . The Respondent were not aware of the amendment that had been brought to the definition of output service and other provisions of CENVAT Credit Rules, 2004 with effect from 19.04.2006, as earlier, it was permitted for utilization of CENVAT Credit availed on the GTA service (inward freight) in discharging the liability of GTA service (outward freight) treating it as output service . The ld. Advocate has further submitted that the entire amount of service tax liability on the GTA service (outward freight) had been properly determined and paid by utilizing the CENVAT Credit availed on the GTA service (inward freight), and the payments were duly reflected in the relevant ST-3 return filed with the Depa....

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....redit on the GTA service (inward freight) was available to an assessee, till 18.04.2006 in discharging service tax on GTA service (outward freight). I find force in the argument of the learned Advocate that under a bona fide mistake and belief, they had continued to utilize the CENVAT Credit availed on the amount of the service tax paid on the GTA service (inward freight), while discharging the liability as consignor for the GTA service (outward freight). The availment of the CENVAT Credit and its utilization were duly reflected in their ST-3 returns filed with the Department periodically. The learned Commissioner (Appeals) after discussing the facts of the case has recorded a categorical finding that it is a case where the Adjudicating Aut....