2014 (10) TMI 31

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.... the Respondent is entitled to utilise his Cenvat credit for payment of service tax on the service of Goods Transport Agency Services on reverse charge basis during the period June, 2007 to November, 2007. 3. Shri. B.S. Meena, Ld.AR (Additional Commissioner) appearing on behalf of the Appellant (Revenue) reiterates the grounds made in the Appeal memo. 4. On the other hand, Shri D.H. Nadkarni, Ld. Counsel for the respondent submits that in terms of definition of output service provided under Rule 2(p) and explanation thereof the service on which payment of service tax is made on reverse charge basis, such service falls under the definition of 'output service'. He submits that it is permitted under Rule 3(4)(e) of Cenvat Credit Rule....

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....xpressions 'provider1 and 'provided' shall be construed accordingly.     Explanation. - For the removal of doubts it is hereby clarified that if a person liable for paying Service Tax does not provide any taxable service or does not manufacture final products, the service for which he is liable to pay Service Tax shall be deemed to be the output service. 5.2 From the above explanation it is clear that even though the person is not providing service but is paying service tax as per law on reverse charge basis, by the fiction of law the service on which he is discharging service tax shall be deemed to be 'output service'. In the present case also the respondent, since they discharged the service tax on GTA....

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.... settled by the following decisions of the Hon'ble High Courts:-         (a) CCE vs. Nahar Industrial Enterprises Limited - 2012 (25) STR 129 (P&H) ST.         (b) CCE vs. Auro Spinning Mills - 2012 (279) ELT 349 (H.P.)         (c) CST vs. Hero Honda Motors Limited - 2013 (29) STR 358 (Del.)     4. In the above decisions, the Hon'ble High Courts have held that there is no bar for payment of service tax from the CENVAT Account and there is no legal restriction for utilization of CENVAT credit for the purpose of payment of service tax on GTA services. The Hon'ble High Court of Punjab & Haryana, in the case of....