2014 (11) TMI 113

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....ished goods manufactured by them. The appellant sold the finished excisable goods to commission agent and the said commission agent discharged Service Tax liability under the category of Business Auxiliary Service for the period 09.07.2004 to 09.09.2004. The appellant took the CENVAT Credit of such Service Tax on 31.03.2005 which was objected to as being not in consonance with the Rule 3 (1) of CENVAT Credit Rules, 2004. The adjudicating authority as well as the first appellate authority did not agree with the contentions raised by the appellant and confirmed the demand. 3. Ld.Counsel, after taking me through the facts of the case and the show cause notices, submitted that the invoices which were issued by the commission agent were in resp....

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....sions specifically reads as the CENVAT Credit Rules, 2004 are applicable only in respect of the duties paid on or after 10.09.2004 and invoices raised on or after 10.09.2004. 5. I have considered the submissions made at length by both sides and perused the records. 6. The issue involved in this case is whether the appellant is eligible to avail CENVAT Credit of the Service Tax paid by the commission agent on the goods which were cleared prior to 10.09.2004; invoices raised in January 2005 and March 2005 indicating thereon the payment of Service Tax on such commission paid or otherwisel. 7. Undisputedly, the goods which were sold by paying commission to the agent were prior to 10.09.2004. The documents which were filed with the Customs au....

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.... if the output service provider was providing the same service i.e. Business Auxiliary Service. In the instant case, the appellants were not providing Business Auxiliary Service and, therefore, not eligible to avail the CENVAT Credit of Service Tax paid on Business Auxiliary Service under the Service Tax Credit Rules, 2002. Therefore, the contention of the appellants that in terms of the Service Tax Rules, 2002, they were eligible to avail CENVAT Credit of Service Tax paid on the Business Auxiliary Service received by them prior to 10.09.2004 is not correct. Hence, the averment that the impugned credit was earned by them prior to 10.09.2004 is incorrect and not sustainable. Therefore, the provision of Rule 11 of the CENVAT Credit Rules, 200....

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....anufacturer of final product or by the provider of output services on or after the 10.09.2004. In view of the said provisions, a manufacturer can avail the CENVAT Credit of Service Tax paid on input service received on or after 10.09.2004. In the instant case, the commission agent had procured orders/effected sale of finished goods during the period from 09.07.2004 to 09.09.2004. The appellants have also not disputed the fact that the impugned service relate to the period prior to 10.09.2004. Therefore, I find that the said service had been received by the appellants during the period prior to 10.09.2004 and only the bills for the said service were raised later and the payments made subsequently. As per Rule 3 of the CENVAT Credit Rules, 2....