2007 (7) TMI 110

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....ation of inputs and outward transportation of final products, they make use of Goods Transport Agency's (GTA) service and pay Service Tax thereon. One of the appellants made these payments of Service Tax by way of debit in CENVAT account during the period February, 2005 to April, 2006. The other appellant did likewise during the period April-September, 2006. Such utilisation of CENVAT credit for p....

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.... of the said Explanation. But, during this period, the said party was also providing a taxable service (testing of yarn), whereby they could not claim the benefit of the Explanation. In the case of the other assessee, the availment of CENVAT credit for payment of Service Tax on GTA service was after omission of the Explanation. Learned counsel has made an endeavour to get over the omission of Expl....

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....lder or any other person, as the case may be, and the expressions 'provider' and 'provided' shall be construed accordingly; Explanation - For removal of doubts it is hereby clarified that if a person is 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 e the output s....

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....able to pay service tax" is an expression which figured in the Explanation. When the Explanation was omitted, the same expression occurring in the definition of "provider of taxable service" under Rule 2(r) was rendered nugatory. Apparently, the expression "provider of taxable service" required to be defined in the context of Explanation to the definition of "output service". When the Explanation ....