2015 (10) TMI 628

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.... of service tax. Revenue filed against the impugned orders wherein the Commissioner (Appeals) has allowed the appeals of the respondents by relying this Tribunal's decision in the case of India Cements Vs CCE Salem - 2007 (80) RLT 719 (CESTAT-Che.) and in the case of Andhra Pradesh Paper Mills Ltd. Vs CCE Vishakahapatnam - 2007 (83) RLT 118 (CESTAT-Ban.). Revenue defends their grounds only based on Board's circular No.345/4/2005-TRU dt. 3.10.2005. 4. Ld. Advocate reiterated the findings of the Commissioner (Appeals) and also relied the decision by the Hon'ble Madras High Court in the case of CCE Salem Vs Cheran Spinners Ltd. reported in 2014 (33) STR 148 (Mad.). 5. After consideration of the submissions of both sides, and ....

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....or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal; Rule 2(p), on which heavy reliance placed by the Revenue, defines 'output service', which reads as under :- 2(p) '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....

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.... be entitled to in the matter of Cenvat credit adjustment. Thus, a reading of Rule 2(l) and 2(p) would show that they cover two different situations and though their operations are totally different, yet, for the purpose of giving credit to the Service Tax payable from the Cenvat credit available, the recipient is also entitled to the same relief as a provider of the service. Thus, we do not find any error in the reasoning of the Tribunal that in the payment of Service Tax liability by the recipient of taxable service, such assessees are also entitled to make use of Cenvat credit to discharge their liability under the Service Tax provisions. Consequently, we do not agree with the submission of the Revenue to set aside the order of the Tribu....