2019 (7) TMI 567

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.... the case and in law, the Tribunal was right in holding that prior to 20.06.2012 there was no restriction in utilizing the Cenvat Credit for payment of tax on input services, even when Rule 3(4)(e) of Cenvat Credit Rules, 2004 was very much in existence ?   (II) Whether in facts and circumstances of the case and in law, the Tribunal was right in holding that once a person is liable to service tax, he becomes provider of taxable service under rule 2(r) and consequently becomes output service provider under rule 2(p) of the Cenvat Credit rules, 2004? 3. The basic issue raised by the revenue is whether the Respondent is entitled to discharge its service tax liability on import of service under reverse charge basis under sectio....

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....n reverse charge basis. It also made a specific reference to Rule 5 of the Taxation of Services (provided from Outside India and Received in India) Rules, 2006 hold that prohibition therein is only for availing of cenvat credit and not for utilizing the cenvat credit to discharge its service tax obligation on reverse charge basis. Mr. Ochani, learned counsel for the Appellant inform us that the revenue has accepted the decision of the Tribunal in Kansara Modler Ltd. (supra). (d) Besides the impugned order of the Tribunal also holds that prior to 20th June, 2012 when the explanation was introduced to Rule 3 (4) of the Cenvat Credit Rules, 2004 prohibiting utilizing cenvat credit for payment of service tax by the person liable to pay....

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....port Agency). The above decision of Gujrat, Delhi and Punjab High Courts were also followed by us in Commissioner of CGST and General Excise, Belapur Commissionerate vs. M/s. GTL Infrastructure Limited in (Central Excise Appeal No. 94 of 2019) decided on 25th June, 2019 in respect of discharge of service tax obligation on reverse charge basis on import of services under Section 66A of the Finance Act, 1994 by utilization of cenvat credit. Thus there is no reason not to follow our Court's decision in GTL Infrastructure Limited (supra). 7. On the above being pointed out, the distinction which is sought to be made out by the Revenue before us for not following the earlier decisions, is, the prohibition found in Rule 5 of the Taxation of....