GTL INFRASTRUCTURE LTD. Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THE appellant is in appeal against the impugned order wherein demand has been confirmed on account of denial of CENVAT Credit availed by the appellant along with interest and penalties under Section 77 & 78 of the Finance Act, 1994.

(2.) THE brief facts of the case are that the appellant is engaged in various types of activities such as creating telecom infrastructure and providing 'Output Service' to his client/customers. As the only dispute which arises before us is whether the stated service provided by the appellant is covered under Business Auxiliary Service. Therefore, the same is considered in the appeal in question. For that purpose the appellant is doing the following activity:

(3.) ON the other hand, learned AR opposed the contention of the Ld. Counsel and submits that the Cenvat Credit Rules provided for Cenvat Credit availment across goods and services. Therefore, credit on input goods can be used against payment of excise duty on input goods and against payment of service tax on output service. Similarly, Cenvat Credit on input service can be used for the provisions of output service or against the payment of excise duty of output goods. Therefore, the Cenvat Credit Rules provide that in order to avail credit nexus/relationship must be established between input use and output provide whether they are output goods or output service.