2019 (3) TMI 514

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....red expenses as carriage inward in the financial year 2007-08 to 2009-10 on which the service tax has been paid from the available inputs credit accounts. Denying goods transport agency to be an output service, that the Department proposed recovery of service tax for Rs. 1,06,782/- for period 2007-2010 (upto 31.12.2009) alongwith the interest and the penalties under relevant statute. Said proposal was initially confirmed by Order-in-Original No.147 dated 30.01.2007. When the appeal against the said order was filed the same has also been rejected. Resultantly, the appellant is before this Tribunal. 1.1 It is submitted by the appellant in person that the adjudicating authority has mainly relied upon Circular No.7/2008 dated 23.08.2007. Hen....

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....cated in the present appeal is: Whether a manufacturer having credit balance in his account can utilize that credit for payment of Service Tax on goods transport by road? 4.1 The relevant statute for the purpose is Cenvat Credit Rules in Finance Act, 1994. Rule 3 (4) of CCR says as: The cenvat credit may be utilized for payment of (a) any duty of excise on any final product; or (b) ....................................................... (c) ...................................................... (d) ...................................................... (e) service tax on any output service:" Provided that while paying the duty of excise and service tax, as the case may be, the cenvat credit shall be utilized only to ....

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....and there is no legal restriction for utilization of cenvat credit for the purpose of payment of Service Tax even on GTA services. The argument of the Revenue that assessee cannot pay service tax from cenvat credit availed by them was held not tenable by Hon'ble High Court of Punjab & Haryana in view of para 2.4.2 of CBEC's Excise Manual of Supplementary Instructions. 6. From the entire above discussion and the facts on record, it is an apparent case that the service tax liability has been discharged by the appellant though from the accumulated cenvat credit account but result remains is that no intention to evade duty can be attributed to the appellant. Discharging the liability by utilizing the cenvat credit is otherwise a situation of....