Commissioner Of Central Excise vs M/S. Up Asbestos Ltd

[Arising out of Order-In-Appeal No. 100/ST/LKO/2013 dated 22/12/2013 passed by Commissioner of Central Excise & Service Tax (Appeals), Lucknow ]

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?

Commissioner of Central Excise Appellants

& ST, Lucknow

Vs.

M/s. UP Asbestos Ltd. Respondent

Appearance:

Shri V P Batra, AR for the Appellants

Shri Kamaljeet Singh, Advocate for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing /decision: 12.2.2015

FINAL ORDER NO. A/ 50395 /2015-ST(SM)

Per Ashok Jindal :

The short issue to be decided in this appeal whether payment towards goods outward transportation service can be made by utilizing the Cenvat credit or not during the impugned year.

2. Learned AR relied on the decision of ITC Ltd. vs. CCE, Guntur [2011 (23) STR 41 (Tri-Bang)] to say that Cenvat credit cannot be utilized for payment of outward transportation service.

3. On the other hand, learned Counsel for the respondent submits that the issue came up before the Honble Punjab and Haryana High Court in the case of Nahar Industrial Enterprises Ltd. [2012 (25) STR 129 (P&H)] wherein it was held that Cenvat credit can be utilized for payment of goods transportation service during the impugned period. Further, he submits that this Tribunal in the case of Shree Rajasthan Syntex Ltd. vs. CC Jaipur [ 2011 (24) STR 670 (Tri-Del)] has held that Cenvat credit can be utilized for payment of service tax towards outward transportation service by a manufacturing unit. In these circumstances, issue is no more rest integra. Therefore, I hold that learned Commissioner (Appeals) has rightly held that respondent can utilize the Cenvat credit account for payment of outward transportation service. Therefore, I do not find any infirmity in the impugned order. Same is upheld. Appeal filed by the Revenue is dismissed.

(operative part of the order pronounced in the open court )

( Ashok Jindal ) Member(Judicial)

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