2023 (3) TMI 694

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.... of Foreign commission agent for sale of their goods abroad. They failed to pay the service tax on Reverse Charge Mechanism and when the same was pointed out by Revenue they paid the amount along with interest. The revenue issued the SCN and confirmed the demand along with penalties under Section 77 & 78. Against the said order before the Tribunal. 2.2 Learned Counsel pointed out that they had paid the Service Tax liability by utilizing CENVAT Credit and the same was not recognized by the Commissioner (Appeals) in the impugned order as due payment of pre deposit under Section 35F. Therefore, their appeal was dismissed for failure to comply with Section 35F. The Commissioner (Appeals) also took up the appeal of revenue wherein revenue had....

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....he had himself provided the service in India. This, in taxing parlance, is known as payment on "reverse charge basis". In the Service Tax universe, Service Tax is payable, on reverse charge basis in various circumstances, chiefly in cases of "import of service", i.e. where the Service Tax provider is located outside India and the Service Tax recipient is located in India, and where the service provider is a Goods Transport Agency (GTA). 25. Rule 2(1)(d)(iv) of the [Service Tax] Rules defines the recipient of the service, in cases where the service, received by a recipient in India, is provided by a service provider located outside India, as the "person liable for paying service tax". 26. The issue to be determined is wheth....

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....ble for paying Service Tax". (vi) The Indian recipient of the service also, therefore, becomes the "person liable for paying Service Tax", under the Cenvat Credit Rules. (vii) The Indian recipient of the Taxable Service also, consequently, becomes the "provider of Taxable Service", as defined in Rule 2(r) of the Cenvat Credit Rules. (viii) Rule 3(4) of the Cenvat Credit Rules permits Cenvat credit to be utilised for payment of Service Tax on any "Output Service" is defined, in Rule 2(p) of the Cenvat Credit Rules as service provided, by a provider of Taxable Service. It has already been pointed out, hereinabove, that the petitioner was, by dint of the definition of the expression, as contained in Rule 2(r) of the ....

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....a 7 of which reads thus : "The view taken by the Tribunal in respect of Rule 3(4)(e) of the Cenvat Credit Rules, 2004 now stands concluded against the revenue by the decision of the Gujarat High Court in the case of Commissioner of C.Ex. & Customs v. Panchmahal Steel Ltd., 2015 (37) S.T.R. 965 (Guj.), Delhi High Court in the case of Commissioner of Service Tax v. Hero Honda Motors Ltd. - 2013 (29) S.T.R. 358 (Del.) and Punjab and Haryana High Court in Commr. of C.Ex., Chandigarh v. Nahar Industrial Enterprises Ltd., 2012 (25) S.T.R. 129 (P & H). The aforesaid decisions have been followed by this Court in The Commissioner of CGST & Central Excise v. Godrej & Boyce Mfg. Co. Ltd. (Central Excise Appeal No. 23 of 2019) decided on 24th ....