2019 (2) TMI 1021

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....r Cenvat account. A common order-in-original was issued wherein the demand of service tax on reverse charge basis, was confirmed on the ground that the appellant was not supposed to utilize Cenvat credit for payment of servicer tax in respect of services received, on reverse charge basis. In the same order, since the payment of service tax was held illegal, the Cenvat credit of the same amount was disputed and the same was denied. The appellant filed two appeals, one bearing No. ST/10820/2016-SM related to payment of service tax by utilizing the Cenvat account and the present appeal bearing No. E/10819/2016-SM. In the present appeal, the issue is of wrong availment of credit of service tax paid in respect of services received from overseas ....

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....lization of Cenvat credit for payment of service tax has been decided in favour of the appellant, which is reproduced below:- "2. Heard both sides, considered the submissions. As the issue has already been settled by various judicial pronouncements wherein it has been held that for payment of service tax, Cenvat credit can be utilised in cash first and thereafter the assessee is entitled to avail Cenvat credit. The issue came up this Tribunal in the case of Morarjee Textile Limited vs. CCE, Nagpur - 2015- TIOL-354-CESTAT-MUM wherein this Tribunal observed as under: "6. I find that to determine eligibility to pay duty from the CENVAT Credit account, the Rules namely Rule 2(r), (2)(p) and 2(q) of Cenvat Credit Rules, 2004 need to ....