2017 (5) TMI 152

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dit on input service namely GTA service. The Adjudicating authority confirmed the demand of Service Tax alongwith interest and imposed penalty. By the impugned order, the Commissioner (Appeal) upheld the Adjudication order. 2. Heard both sides and perused the case records. 3. The Ld. Counsel appearing on behalf of the appellant submitted that the issue has been decided by the Tribunal in their favour as under: (i) Bhusan Power & Steel Ltd. Vs. Commr. of C. Ex., Customs & Service Tax,BBSR-II-2008 (10) S.T.R. 18 (Tri-Kolkata) (ii) Commr. of Central Excise, Chandigarh Vs. Nahar Industrial Enterprises Ltd.-2007 (7) S.T.R. 26 (Tri.- Del.) (iii) Mahindra Ugine Steel Co. Ltd. Vs. Commr. of C. Ex., Raigad-2008 (12) ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rson falling in category (b) above, who is liable to pay service tax as service recipient in respect of some taxable service received by him, the service received by him shall be deemed to be his output service. Since this legal fiction is applicable only for the persons of category (b) above i.e. those who do not provide any taxable output service or any manufacture of dutiable final products, the same is not applicable for the persons of category (a), i.e. those who provide some taxable service/services and/or manufacture some dutiable final products. Therefore for such persons, the service received by them on which they are liable to pay service tax as service recipient cannot be treated as their output service and service tax on the sam....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and inputs and capital goods received are used in or in relation to manufacture of final products or providing of taxable output services. For the persons of category (b), in respect of their deemed output service, which is the service received by them on which they are liable to pay the tax, other taxable services received by them cannot be deemed to be the input services, as for this another legal fiction will be required, which is not there in the Cenvat Credit Rules, 2004. In the present case, since the appellant are not manufacturing any final product or providing any taxable services, the services of telephone, security services, repair and maintenance services, scientific or technical consultancy services etc., cannot be treated as t....