PRAKASH INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides on the stay petition.

(2.) THE applicant, a manufacturer of excisable goods, is recipient of services of 'Goods Transport Agency'. Though they are recipient of services, by a deemed provision under Rule 2(p) of Cenvat Credit Rules, they are required to pay the Service Tax and accordingly paid the service tax; after paying the said Service Tax they have taken credit of the same in their cenvat account holding it as tax paid on input services. For payment of their subsequent liabilities of Service Tax on services received by them, they have used cenvat account and issued invoice to self which indicated the amount of Service Tax paid by them from the cenvat account. In addition to being deemed service provider, as they are also the recipient of input services, based on the invoice issued on self indicating the Service Tax paid by them from their cenvat account, they have taken the said Service Tax again as credit. The Department is objecting to the same on the ground that the credit is being taken on a document which is not a prescribed document for taking credit under Rule 9 of the Cenvat Credit Rules. According to the department, the challan mentioned in Rule 9(1)(e) should be TR -6 challan.

(3.) WE have considered the submissions and the records. The applicant is both a recipient of service as well as a deemed service tax provider. As a deemed service tax provider, the duty has been paid by them from cenvat account and the question of their preparing TR -6 challan does not arise. The payment of Service Tax is not in dispute. The eligibility to the credit Service Tax paid is also not in dispute. Under these circumstances, the invoice prepared by the applicant to themselves indicating the service tax paid by them may qualify for taking credit. In view of the above, we hold that the applicant is entitled to the benefit of waiver of dues as per the order of the original authority. We order accordingly.