2026 (5) TMI 59

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....Tax Appellate Tribunal, Bangalore, raising the following substantial questions of law: (i) WHETHER, the CESTAT has committed an error in ignoring the restriction contained in Rule 5 of Taxation of Services (Provided from outside India and Received in India) Rules 2006? (ii) WHETHER, the CESTAT has erred in not holding that explanation to Rule 3(4) of CENVAT CREDIT RULES inserted vide Notification No.28/2012-CE (N.T.) dated 20/06/2012 is clarificatory and does not confer any right on the assessee for payment of service tax in respect of services where the assessee is service recipient? (iii) WHETHER, the service recipient is construed as output service provider for the purpose of availing and utilizing the CENVAT C....

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....ervice tax, the service provider was outside the country, in law he has been treated as a service provider and is levied tax, the liability to pay tax on the service which he has received was foisted on such assessee under law. In order to discharge the said liability, he is entitled to use the cenvat credit which was available with him. 17. In Godavari Sugar Mills Ltd., supra, another Co-ordinate Bench of this Court having considered Rule 3(4)(e) of Cenvat Credit Rules, 2004 and Section 68(2) of the Finance Act, 1994, in the context of the assessee utilizing the cenvat credit of input services availed under Cenvat Credit Rules towards payment of GTA services and the credit of service tax paid by them for GTA, held that in view of ....