2021 (12) TMI 623

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ervice tax paid on the input services used/utilized for providing the taxable output services. During the disputed period from 2015-16 to 2016-17, the appellant had paid an amount of Rs. 20,42,541/- as service tax under reverse charge mechanism in respect of the taxable services namely, works contract and security services received by them. The appellant had availed cenvat credit of service tax paid on such input services and also utilized such credit for payment of service tax on the output services provided by them. Availment/utilization of such credit was disputed by the department on the ground that as a recipient of service, cenvat credit cannot be used for payment of service tax on the output service. In this context, the show cause p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... stand of the appellant that the impugned order should be set aside: (i) Oudh Sugar Mills Ltd. Vs. Customs, Excise & S.T. Appellate Tribunal - 2017 (52) S.T.R. 353 (All.) (ii) Commissioner of Central Excise, Salem Vs. Cheran Spinners Ltd. -2014(33) S.T.R. 148 (Mad.) (iii) Commissioner of Service Tax Vs. Hero Honda Motors Ltd. - 2013 (29) S.T.R. 358 (Del.) (iv) Commissioner of Central Excise Vs. Auro Spinning Mills - 2012 (26) S.T.R. 413 (H.P.) (v) Commissioner of Central Excise Vs. Nahar Industrial Enterprises Ltd. - 2010-TIOL-868-HC-P&H-ST (vi) Kansara Modler Ltd. Vs. Commissioner of Central Excise, Jaipur-II- 2013 (32) S.T.R. 209 (Tri.-Del.) (vii) Tata Aig Life Insurance Co. L....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....15 to March 2017. It is an undisputed fact that in the capacity of recipient of service, the appellant had paid the service tax on the disputed input services under the reverse charge mechanism and that such service tax paid by them was availed and utilized for payment of service tax on the output services. The manner of availment and utilization of cenvat credit is contained in sub-rule (1) and (4) of Rule 3 ibid respectively. Clause (e) in sub-rule (4) ibid provides for utilization of cenvat credit for payment of service tax on any output service. However, an explanation clause was appended in the said sub-rule vide Notification No. 28/2012- C.E. (N.T.), dated 20.06.2012, w.e.f. 01.07.2012, providing the restrictions that cenvat credit ca....