2007 (6) TMI 515

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....29/2006, S/PD/106/2006 in S/230/2006, S/PD/107/2006 in S/231/2006, S/PD/108/2006 in S/232/2006, S/PD/109/2006 in S/233/2006, S/PD/110/2006 in S/234/2006, S/PD/111/2006 in S/235/2006, S/PD/112/2006 in S/236/2006, S/PD/113/2006 in S/237/2006, S/PD/114/2006 in S/238/2006, S/PD/115/2006 in S/239/2006, S/PD/116/2006 in S/240/2006, S/PD/129/2006 in S/263/2006, S/PD/130/2006 in S/264/2006, S/PD/131/2006 in S/265/2006, S/PD/132/2006 in S/266/2006, S/PD/133/2006 in S/267/2006, S/PD/06/2007 in S/11/2007, After examining the records and hearing both sides, I am of the view that the appeals require to be finally disposed of at this stage. Accordingly, after dispensing with pre-deposit, I take up the appeals. 2. The appellants are manufacturers of....

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.... to be settled with reference to Explanation to the definition of 'outward service' under Rule 2(p) of the CENVAT Credit Rules, 2004. I find that this exercise was done in a similar case viz. R.R.D. Tex (P) Ltd. Vs. Commissioner of Service Tax, Salem (Appeal No. S/12/2007) and the issue was decided in favour of the assessee vide Final Order No. 606/2007 dated 18.5.2007. The relevant part of the said final order is reproduced below: "3. After hearing both sides and considering their submissions, I find that the short question arising for consideration in this case required to be settled with reference to Explanation to the definition of 'Output service' under Rule 2(p) of the CENVAT Credit Rules, 2004. The definition, with the Explanation....

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....d be validly availed. The decision to the contra taken by the lower authorities cannot be sustained. 4. In the case of The India Cement Ltd. Vs. Commissioner of Central Excise, Salem, cited by learned counsel, a similar question had arisen and this Bench held as under:- "By virtue of the Explanation, it shall be deemed to be 'output service'.  In other words, the appellants, while paying service tax on GTA service availed in connection with removal of their final product from factory, were doing so on an 'output service' and, therefore, they were entitled to utilize, for payment of service tax on such service, credit of the tax paid on the input GTA service availed by them in connection with receipt of inputs into their factory".....