SINGHAL POWER PRESS PVT. LTD. Vs. CST

JUDGEMENT

(1.) APPELLANT is a manufacturer and is also registered as a service tax provider. Demand for service tax of Rs. 1,54,500/ - with interest has been confirmed and penalty under Section 76 & Section 77 of Finance Act, 1994 have been imposed on the ground that appellant has utilised input cenvat credit for payment of service tax on erection, installation and commissioning service provided by them.

(2.) HEARD both the sides. The original adjudicating authority has observed that the appellant failed to register themselves as a provider of erection, commissioning and installation service. Further he has also observed that appellant paid service tax on installation, erection and commissioning service by utilizing CENVAT credit. However the learned advocate submitted that appellant was indeed registered for the purpose of providing service tax on erection, installation and commissioning service also. Further he also submitted that appellant had paid service tax on erection, commissioning and installation service by utilizing input service tax credit and not input CENVAT credit as held by the authorities. He fairly admits that the service tax credit account was not shown to the original adjudicating authority. However I find that the Commissioner (Appeals) in his order has made the following observation with regard to the claim that service tax was paid out of input service tax credit.