TaxTMI 
TaxTMI 
2008 (5) TMI 45
X X X X Extracts X X X X
X X X X Extracts X X X X
.... vide which the Commissioner (Appeals) has upheld the impugned order that confirmed the demand of Service Tax and also imposed penalties on the appellant. 2. Relevant facts that arise for consideration are that the appellant had discharged the Service Tax liability on the services received from goods transport agency for the period January 2005 to February 2006 through Cenvat credit account instead of paying it by TR 6 challan. The lower authorities issued a show cause notice and adjudicating authority confirmed the demand by relying upon the provisions of Rule 2 (p)and Rule 3(4) of the Cenvat Credit Rules, 2004. The appeal filed by the appellant was also rejected on the very same ground. While rejecting the said appeal, the Commissioner....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... now squarely covered by the decisions of the Division Bench of the Tribunal in the case of M/s. Bhushan Power and Steel Ltd. 2008 (84) RLT 95 (CESTAT-Kol) =2007-TIOL-1828-CESTAT-Kol., India Cements Ltd. Vs. CCEx, Salem 2007 (80) RLT 719 (CESTAT-Che.)=2007 (7) STR 569 (Tri. -Chennai) and in the case of Andhra Pradesh Paper Mills Ltd. Vs. CCEx, Visakhapatnam-II 2007 (83) RLT 118 (CESTAT-Ban.)-2007 (6) STR 166 (Tri.-Bang.). He submits that all these Division Bench decisions were followed by the Tribunal sitting singly in their own case. It is his submission that since the issue is squarely covered in favour of the appellants, the appeal may be decided in their favour. 4. Ld. Jt. CDR, on the other hand, submits that the provisions of Rule 3....
X X X X Extracts X X X X
X X X X Extracts X X X X
....by the provider of taxable service, to a customer, client, subscriber, policy holder or any other person, as the case may be, and the expressions 'provider' and 'provided' shall be construed accordingly; Explanation - For the removal of doubts it is hereby clarified that if a person liable for paying service tax does not provide any taxable service or does not manufacture final products, the service for which he is liable to pay service tax shall be deemed to be the output service. (q)... (r) "provider of taxable service" include a person liable for paying service tax;" It can be seen from the above reproduced provisions of Rule 2(p) and Rule 2(r) that the said rules defined the output services and provider of taxable services. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that the output services definition includes the person liable for paying Service Tax. The Service Tax liability on the service receiver from goods transport agency has been fastened on the receiver of the services of the goods transport agency, which would mean that they are considered as provider of taxable services. If that be so, the utilization of Cenvat credit under the provisions of Rule 3(4) of the Cenvat Credit Rules, 2004 for discharge of Service Tax liability on the services received from the goods transport agency cannot be objected to by the revenue. We also find that our above view has been fortified by the decisions of the Coordinate Bench in the case of India Cements Ltd. (supra) wherein the tribunal held as under: Cenvat....