Apex Metchem Pvt. Ltd vs Commissioner Of Central Excise

Customs Excise and Service Tax Appellate Tribunal8 June 2015

CitationService Tax Appeal No. 1345 -1346 of 2011- (SM)

Ratio decidendi

The rule this decision rests on

For the period prior to 01.03.2008, the assessee is entitled to utilise cenvat credit for payment of service tax on outward transportation service, following the Punjab and Haryana High Court's decision in Nahar Industrial Enterprises Ltd. For the period from 01.03.2008 onwards, the amended definition of "output service" under Rule 2(p) of the Cenvat Credit Rules, 2004 applies, and the assessee is not entitled to utilise cenvat credit for payment of service tax on outward transportation service.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE CUSTOMS, EXCISE AND SERVICE TAXAPPELLATE TRIBUNAL, NEW DELHIPRINCIPAL BENCH, COURT NO. IIService Tax Appeal No. 1345 -1346 of 2011- (SM)

[Arising out of Order-In-Appeal No. 251-252(DKV) ST/JPR-I/2011 dated 6/06/2011 passed by Commissioner of Central Excise(Appeals), Jaipur]

For approval and signature:

Honble Mr Ashok Jindal, Member (Judicial)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

Apex Metchem Pvt. Ltd. Appellants

Vs.

Commissioner of Central Excise Respondent

Jaipur

Appearance:

Shri Mayank Garg, Advocate for the Appellants

Shri R K Mishra, AR for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing /decision: 08.06.2015

FINAL ORDER NO. A/ 51859-51860/2015-(SM)

Per Ashok Jindal :

The appellants are in appeal against the impugned order wherein the appellants were asked to pay the service tax on outward transportation service in cash without utilizing the cenvat credit. The period involved in both the appeals is October, 2007 to September, 2008. Under Rule 2(p) of Cenvat Credit Rules, 2004, the definition of output service came to amended with effect from 01.03.2008. The Honble High Court of Punjab and Haryana in the case of Nahar Industrial Enterprises Ltd. [2012 (25) STR 129 (P&H)] has held that for the period prior to 01.03.2008, the assessee is entitled to utilize the cenvat credit for payment of outward transportation service. Therefore, I hold that for the period October, 2007 to February, 2008, the appellant is entitled to avail cenvat credit account for payment of outward transportation services. For the remaining period i.e. from 01.03.2008 to September, 2008, the appellant is not entitled to utilize cenvat credit account for payment of tax on outward transportation service.

2. With these terms, the appeals are disposed of.

(Dictated and pronounced in the open court )

( Ashok Jindal ) Member(Judicial)

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