2014 (2) TMI 619

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....talysts out of raw material supplied by them. During the period from March, 2005 to May, 2007, they availed services of GTA for transportation of inputs to their premises. The appellant availed Cenvat Credit of the GTA service availed by them for inward transportation of their goods to their premises and utilized the same for payment of service tax on the scientific and technical consultancy service provided by them. The department was of the view that the appellant were not eligible for Cenvat Credit in respect of the GTA service availed by them, as the same has no nexus with their activity of scientific and technical consultancy service and on the contrary, has been used in respect of their trading activities. Accordingly, the Department ....

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....ld. Counsel for the appellant, pleaded that the appellant were entitled for Cenvat Credit of GTA services availed by them for inward transportation of the inputs as they had used the inputs for getting the final products manufactured through M/s. ICI India Ltd., that in this regard, the appellant must be treated as a manufacturer, that no one to one co-relation between the inputs and input service and the final products manufactured/output service provided is required for utilization of Cenvat Credit and therefore utilization of Cenvat Credit in respect of GTA Service received for payment of service tax on scientific and technical consultancy service cannot be denied., that in any case, the availment of Cenvat Credit in respect of GTA servi....

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....available to a manufacturer of excisable goods or procedure of output services only in respect of inputs or input services used in or in relation to the manufacture of final products or provisions of output service, that since in this case the GTA services has been availed had been used in relation to their trading activities, they were not eligible for Cenvat Credit and hence to the extent, this Cenvat Credit has been used for payment of service tax on their scientific and technical consultancy service, such payment would not be treated as proper payment of service tax. She also pleaded that the appellant have suppressed the relevant facts from the department and hence, longer period of limitation has been correctly invoked and penalty und....