COMMISSIONER OF CENTRAL EXCISE, VISAKHAPATNAM Vs. M/S. NACL, UNIT - II, GANTI VILLAGE, EAST GODAVARI DIST. (A.P)

JUDGEMENT

(1.) 1 Appeal No. ST/972/2010 is filed by the department against the order of the Commissioner (Appeals) No. 59/2009 (V -II) CE dated 31.08.2009 by which the order of the original authority No. 4/2009/HKS/KKD -2/ST dated 25.02.2009 was set aside by the Commissioner (Appeals).

(2.) HEARD both sides.

(3.) 1 The relevant facts, in brief are, that the appellant is a manufacturer of pesticides and insecticides falling under Chapter 38 of the Central Excise Tariff Act, 1985. They were availing CENVAT credit facility for discharging Central Excise duty on the final products manufactured and cleared by them. As a recipient of GTA services, they were registered under Service Tax law and utilized the CENVAT credit for paying service tax on the GTA service so received by them. The original authority vide order dated 25.2.2009 held that a sum of Rs. 3,84,270/ - utilized from CENVAT credit during the period from October 2005 to February 2006 for payment of service tax on GTA service was not legal and accordingly, confirmed demand of service tax of Rs. 3,84,217/ - along with interest and imposed penalty of Rs. 83,600/ - under Section 76 of the Finance Act, 1994.