2022 (1) TMI 396

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....he respondent - assessee has been allowed. 2. The respondent - M/s Toyota Kirloskar Motors claims to be manufactures of Multiutility Vehicles (MUV) for passenger cars and parts thereof falling under chapter sub-heading 8703.23.10 and 8708.10.90 respectively of the Central Excise Tariff and they are registered under the Central Excise and Service Tax. The respondent - assessee has received intellectual property services, commissioning and installation services and maintenance and repair services from their parent company situated abroad and GTA services from M/s Transystem Logistics International (P) Ltd., Bengaluru. They have utilized the credit availed on inputs, input services and capital goods for payment of service tax on the aforeme....

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....tled to utilize the Cenvat Credit for payment of service tax as against the provisions of Section 3(4)(e) of the Cenvat Credit Rules, 2004? 3) Are not the conditions of the Cenvat Credit Rules as regards "provider of taxable service shall be allowed to take credit" (as per Rule 3(1) of the Rules or as regards admissibility of the utilization of cenvat credit only if the input services utilized in providing an output service (as per Rule 2(1) of the Cenvat Credit Rules, 2004 are applicable in the facts and circumstances of the case.?" 7. Learned counsel for the Revenue submitted that the CESTAT blindly applied the dictum enunciated by the Coordinate Bench of this Court in the case of CST v. M/s Aravind Fashions, reported in 2012 ....

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....ch decisions of this Court in the case of M/s Aravind Fashions and Godavari Sugar Mills, supra, the CESTAT has rightly applied the law laid down by this Court and the same deserves to be confirmed by this Court. Learned counsel has invited the attention of this Court to various relevant provisions of the Service Tax Act and Rules as well as the Cenvat Credit Rules, 2004.   11. We have considered the rival submissions of the learned counsel appearing for the parties and perused the material on record. 12. Rule 3(4)(e) of the Cenvat Credit Rules, 2004 reads thus; "3(4) The CENVAT credit may be utilized for payment of - (a) x x x x (b) x x x x (c) x x x x (d) x x x x (e) service ....

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....xx xxxxx xxxxx (iv) in relation to any taxable service provided or to be provided by any person from a country other than India and received by any person in India under section 66A of the Act, the recipient of such service; (v) in relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is,-" 15. Section 66A of the Finance Act, 1994 contemplates charge of service tax on services received from outside India. Section 68(2) of the Finance Act, 1994 reads thus;   "68 (1) x x x (2) Notwithstanding anything contained in subsection (1), in respect of any taxable service notified by the Central Govt. in the Office Gazette, the ....