AKSH TECHNOLOGIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) AFTER hearing both sides, it is seen that the matter lies on a narrow compass. Therefore, I take up the appeal itself with the consent of both the sides, after dispensing with the condition of pre -deposit of dues. The appellant is a manufacturer of excisable goods and avails benefit of Cenvat Credit Scheme. During the period September, 2005, they availed service of an agent located abroad for providing service to the appellant. As a receiver of service, the appellants paid Service Tax. Since the service involved was input service, the appellant took Cenvat credit on such tax paid.

(2.) AFTER proceedings at adjudication level and in first appeal, the first two issues are not in dispute. In fact the first issue is decided in the case of Indian National Shipowners Association reported in : 2009 (13) S.T.R. 235 (Bom.). The issue of payment through Cenvat credit is settled by the decision of Nahar Industrial -, 2011 (104) RLT Online 3 (P & H). The only issue remaining is third issue and here the findings of the Commissioner (Appeals) is that since they were not required to pay Service Tax, they could not have taken credit of Service Tax paid.

(3.) I have heard both the sides on the issue and I find that during the relevant time, Revenue was of the view that Service Tax was to be paid. There was no dispute that the impugned services were input services and then in such circumstances, the credit taken under Cenvat Credit Rules cannot be disputed for the reason that later it was decided that the appellant need not have paid the Service Tax. Therefore, I am of the view that the Cenvat credit taken by the appellant is proper and demand for reversing such Cenvat credit is not maintainable. So the appeal is allowed. Thus stay petition and appeal are disposed of.