2013 (11) TMI 769

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.... For the Respondent : Mr. Ganesh Havanur, Addl. Commissioner (AR) PER : B S V Murthy Appellants are engaged in the manufacture of motor vehicles. A show-cause notice was issued on 01.5.2012 to the appellant proposing to demand service tax of Rs. 1,78,37,676/- on foreign expenditure incurred towards 'Intellectual Property Rights Service' during the period 2008-09. The appellant discharged t....

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....ded from outside India and received in India) Rules, 2006 to hold that the appellant could not have utilized the Cenvat credit for payment of service tax. 2. On going through the provisions, we find that according to Rule 3(4)(e) of Cenvat Credit Rules, 2004, Cenvat credit may be utilized for payment of service tax on any output service. According to provisions of Section 66A(1) of the Finance ....

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.... clear that the restriction applies for availing credit of duty only in respect of excise duty paid on input or service tax paid on any input services and not capital goods. In such a situation, the appellant has made out prima facie case in their favour for correctness of payment made by them. However, it seen that payment was made after two years from the receipt of services and therefore, the a....