TaxTMI 
TaxTMI 
2014 (12) TMI 876
X X X X Extracts X X X X
X X X X Extracts X X X X
.... error of law in holding 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 services, which is not their output service? (b) Whether in the facts and circumstances of the case, the Tribunal has committed substantial error of law in allowing the Cenvat credit utilized by the respondent for the payment of service tax on Goods Transport Agency Service, which is not their output service?" 2. Briefly stated, the facts are that the assessee is engaged in the business of manufacturing excisable goods. The assessee is also liable to pay service tax for the goods transport agency service. The assessee utilized Cenvat credit arisin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....his argument has no force, because a perusal of Para 2.4.2 of CBEC's Excise Manual of Supplementrary instructions shows that there is no legal bar to the utilization of Cenvat credit fro the purpose of payment of service tax on the GTA service. 8. Apart from the above, even as per Rules 3(4)(e) of the Cenvat Credit Rules, 2004, the Cenvat credit may be utilized for payment of service tax on any output service. 9. In the present case also, the service tax was paid out of the Cenvat credit on GTA services and hence, the respondents were well within their right to util....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 68 of the Finance Act, 1994, provides that every person providing taxable service to any person shall pay service tax at the rate specified in Section 66 in the same manner and within such period as may be prescribed. Sub-section (2) of Section 68, however, provides that notwithstanding anything contained in sub-section (1) in respect of any taxable service notified by the Central Government, the service tax thereon shall be paid by such person in such manner as may be prescribed at the rate specified in Section 66, and all the provisions of said Chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service. In view of such statutory provisions, Delhi High Court rejected the Reven....