2008 (1) TMI 227

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is stay application. They manufacture sugar and molasses and operate under Cenvat Scheme. They pay service tax under GTA service on freight for transport of materials into the factory and for transport of final products to their buyers. They utilized Cenvat credit for payment of service tax freight incurred for transport of materials into the factory during the period 1-1-05 to 30-9-05. The origin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sions of the Tribunal in R.R.D. Tex Pvt. Ltd. v. CCE, Salem reported in 2007 (8) S.T.R 186 (Tri.-Chen.) and India Cements Ltd. v. CCE, Salem reported in 2007 (7) S.T.R. 569 (Tri.-Chen.), wherein the Tribunal, relying on the Explanation to Rule 2(p) of C.C.R. had decided that by virtue of the Explanation the GTA service for which the assessee paid service tax was "output service". Accordingly, it w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the service for which he is liable to pay service tax shall be deemed to be the output service. In terms of the Explanation which existed on the statute during the material time, the inward transport is a GTA service and an output service. For payment of service tax oil this output service, Cenvat credit earned by the assessee can be utilized validly. This is also the ratio of the decisions ci....