2015 (9) TMI 1217

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....e entitled to utilise the Cenvat Credit for payment of service tax on Goods Transport Agency services received by them in view of the CBEC Circuler 345/4/2005- TRN dated 3.10.2005, particularly as the circular has not been challenged or set aside? ii) Whether the Goods Transport Agency received by the respondents can simultaneously fall within the definition of 'output service' under Rule 2 (p) of the Cenvat Credit Rules, 2004 and within the definition of 'Input Service' under Rule 2 (l) of the Cenvat Credit Rules, 2004?" 2. The facts, in a nutshell, are as hereunder :- CMA N.1558 of 2010 : The respondent/assessee are manufacturers of tyres under Chapter 40 of the first schedule to the Central Excise Tariff Act. The res....

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....ing an appeal. The Tribunal, after considering the matter allowed the appeal filed by the assessee following its earlier decisions in the case of India Cements Ltd. (2007 (7) STR 569) and RRD Tex Pvt. Ltd. (2007 (8) STR 186). CMA No.1559 of 2010 : 4. The respondent/assessee are manufacturers of tyres under Chapter 40 of the first schedule to the Central Excise Tariff Act. The respondents are availing credit of duty paid on inputs and capital goods and service tax paid on input services. During the period from April, 2005 to September, 2005, the assessee paid service tax of Rs. 8,14,327/- on Goods Transport Agency services received by them. The amount so paid was taken as credit as the GTA service qualified as an input service. However, th....

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....the case of Commissioner of Central Excise, Salem - Vs - Cheran Spinners Ltd. (2014 (33) STR 148 (Mad.)) and, therefore, it is submitted that the questions raised no longer survives for consideration and that similar order may be passed in these appeals as well. 9. In the case of Cheran Spinners (supra), this Court had occasion to deal with identical questions of law and answered the questions in favour of the assessee and against the Revenue. For better clarity, the portion of the order is quoted hereinbelow :- "The above Civil Miscellaneous Appeal is filed at the instance of the Revenue against Final Order Nos. 746 to 772 of 2007, dated 22-6-2007 passed by the Customs, Excise and Service Tax Appellate Tribunal, Chennai. The above Civil....

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....d that the Cenvat credit could be utilised only in respect of "input service" as per definition of 2(l) of Cenvat Credit Rules, 2004. Thus, utilisation of Cenvat credit for payment of Service Tax due was improper and consequently show cause notice was issued, proposing to demand Service Tax on GTA under Section 73 of Chapter V of Finance Act, 1994 along with interest under Section 75 of the Finance Act, apart from proposing levy of penalty under Section 76 of the Act. * * * * * * * * * 10. Going by the fiction under Section 68(2) of the Finance Act, 1994 and Cenvat Credit Rules, 2004, deeming the payer of Service Tax as the person liable for paying the Service Tax in relation to such service, it is clear that while in the case of "input....