2007 (6) TMI 516

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....2. The appellants are manufacturers of excisable goods. They pay service tax on Goods Transport Agency's Service (GTA service for short) received in connection with inward movement on their inputs. They also pay similar tax on similar service received in connection with outward movement of their final products. In both the instances, they are service recipients. During the periods of dispute, which are prior to 19.4.2006, the appellants utilized credit of duty paid on inputs and capital goods as also credit on service tax paid on input service, for payment of duty of excise on final products as also for payment of service on GTA service. The utilization of input-duty credit, capital goods credit and/or input service tax credit for payment o....

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..... The definition, with the Explanation, is reproduced below:- "Output service" means any taxable service provided by the provider of taxable service, to a customer, client, subscriber, policy-holder or any other person, as the case may be, and the expressions "provider" and "provided" shall be construed accordingly. Explanation: For the removal of doubts it is hereby clarified that if a person liable for paying service tax does not provide any taxable service or does not manufacture final products, the service for which he is liable to pay service tax shall be deemed to be the "output service". It has been pointed out by learned counsel that the Explanation was omitted on 19.4.2006 and the same was in force during the period of dis....