2015 (4) TMI 612

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....th section 65(50)(b) of the Finance Act, 1994. For the period 1.11.2006 to 29.2.2008, 4 show-cause notices were issued alleging that during the material period, the assessees were availing CENVAT Credit, in terms of Cenvat Credit Rules, 2004. The credit so availed was, among other, utilized for payment of service tax under the category of "Goods Transport Agency". The notice alleged that the assessee should not have utilized the CENVAT Credit for payment of tax under Goods Transport Agency and instead should have discharged the tax liability in cash. In other words, it was alleged that sub-rule 3(4) of Cenvat Credit Rules, 2004, permits utilization of CENVAT Credit for payment of service tax on any "output service", In the instant case, the....

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....ssioner of Central Excise, Vadodara - 2014 (34) STR 351 (Tri-LB), where the question before the Tribunal was:- "Whether a person who is not a actual service provider but discharges the Service Tax liability on the Taxable Services under Section 68(2) of the Finance Act, 1994, as a deemed service provider, is entitled by virtue of legal fiction to utilize the Cenvat credit inputs/input services/capital goods for payment of Goods Transport Agency Service Tax, even if he is not using such inputs/input services/capital goods for providing taxable services by virtue of deeming legal fiction?" And, the Larger Bench of this Tribunal answered as under:- 3. After hearing both sides, we find the dispute in this case pertains to the period prior to....

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.... utilize the Cenvat credit for the purpose of payment of Service Tax. The Commissioner (Appeals) as well as the Tribunal have rightly held that the respondents were entitled to pay the Service Tax from the Cenvat credit." 5. We find that the other Hon'ble High Courts have also taken the same view. In view of the above, the question referred to is answered in favour of the assessee. 3.1 The learned Counsel for the appellant also drew our attention to the ruling of the Hon'ble Karnataka High Court in the case of Union of India Vs. Flowserve Microfinish Valves Pvt. Ltd. - 2014 (33) STR 634 (Kar), wherein the Tribunal following the ruling of this Tribunal in the case of Nahar Industrial Enterprises Ltd. - 2007 (7) STR 26 (Tri) and Ind....