SCAN SYNTHETICS LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal by the assessee directed against the order -in -appeal of the Commissioner of Central Excise dated 28.11.2007 upholding the order -in -original of the Assistant Commissioner dated 27.6.2007. The dispute relates to utilization of cenvat credit by the appellant for the period from January to September 2005. The appellant is recipient of the goods transport agency (GTA) service. Rule 3 of the Cenvat Credit Rules 2004 deals with cenvat credit; Sub -rule (4) thereof provides that cenvat credit may be utilized for payment of, among other things, service tax on any output service vide Clause (e). The question is whether the appellant as a recipient of the GTA service can utilize the cenvat credit for payment of service tax.

(2.) LEARNED Counsel for the appellant submits that the question as to whether recipient of the taxable service, namely GTA service, is entitled to utilize cenvat credit for paying service tax on an 'output service' is no longer res -integra. He cited the decision in Bhushan Power & Steel Limited v. Commr. of C.Ex. Cus. & Service tax 2008 (10) S.T.R. 18 (Tri. - Kolkata) which was decided following the decision in CCE v. Nahar Industrial Enterprises Ltd., 2007 (7) STR 26 (Tribunal -Del.) and Ors. cases. Counsel also placed reliance on Andhra Pradesh Paper Mills Ltd., v. CCE, Visakhapatnam -II 2007 (8) STR 166 (Tri. -Bang.).

(3.) IN the result, the appeal is allowed. Impugned orders of the authorities below stand set -aside.