2017 (1) TMI 379

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....gents and were paying commission on said agents located outside India. They were discharging the Service Tax liability in respect of such commission paid to the foreign agents in terms of provisions of Rule 2(l)(d)(iv) and (v). The issue required to be decided in the present appeal is as to whether the appellant can utilise the Cenvat credit so earned by them for discharge of Service Tax liability in respect of overseas commission agent. 2. The lower authorities have denied the utilisation of cenvat credit availed by the appellant on the capital goods, for the purpose of discharging their Service Tax liability on the ground that the appellant cannot be treated as provider of taxable service. By relying upon the provisions of Rule 3(4)(e)....

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....d Himachal Pradesh High Court decision in the case of CCE vs. Auro Spinning Mills and Ors. [2011 (1870 ECR 308 (HP) = 2012 (279) ELT 349 (HP) = 2012 (26) STR 413 (HP)] laid down a law that cenvat credit can be utilised for payment of service tax on GTA services, by recipient assessee. However, the period in the said decisions was prior to 19.04.2006. 4. With effect from 19.4.2006, the explanation to Rule 2(b) of Cenvat Credit Rules which conferred status of output services provided to the assessee liable to pay service tax on receipt of services was deleted. 5. The question required to be decided is as to whether such deletion of deeming provision would lead to denial of Cenvat credit utilisation to assessee. Learned DR appearing for ....

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....t Rules, 2004, Cenvat credit may be utilised for payment of Service Tax on any output services. The question which arises is as to whether the appellant can be said to be the provider of any output services. The term output services defined under Rule 2(p) of the Cenvat Credit Rules mean that  any taxable service provided by the provider of taxable service----------- . The term provider of taxable service has been defined in Rule 2(r) of the Rules to include a person liable for paying service tax . It is not in dispute that as recipient of service from goods transport agency, the appellant is liable to pay service tax by virtue of notification under Section 68(2) of the Finance Act, 1994. If the appellant is the person liable to pay se....