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The relevant facts the recently published
case of C.C.E., Ludhiana Appellant -Vs.- M/s Vinayak Textile Mills , in brief,
are that the respondent, manufacturer of cotton yarn availed Cenvat credit of
duty paid on the inputs and capital goods and credit of service tax paid by them
on the input service being used and received by them for the manufacture of
finished goods. The original authority confirmed the demand amounting to
Rs.72,945/- on the ground that the service tax payment was made using Cenvat
credit and not by cash/PLA. On appeal, the Commissioner (Appeals) held that a
sum of Rs.56,583/- related to service tax payable on the services of Goods
Transport Agency received in connection with the receipt of raw materials from
the raw material suppliers. The respondents as recipient of the said services of
GTA are deemed providers of the said services and required to pay service tax
and accordingly, they paid the same from the commonly maintained Cenvat Credit
account in terms of Rule 3 of the Cenvat Credit Rules. He held that there is no
requirement of paying service tax in cash as deemed provider of services on the
said GTA services availed by them.
The court had held that the respondent has been
treated as provider of services of GTA in respect of input services of GTA used
in connection with receipt of inputs. There is no specific bar in Rule 3(4) of
Cenvat Credit Rules in utilising the credit for payment of service tax payable
by the respondent as a deemed service provider.
The links given below to get the complete case
law
2010-ITS-131-CESTAT-C.C.E., Ludhiana Appellant -Vs.- M/s Vinayak Textile Mills .
Respondent , Date of hearing/decision: 21.1.2010
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