Cenavt Credit admissible for Service Tax Paid by DTA on behalf of SEZ under reverse charge mechanism

IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL

SOUTH ZONAL BENCH, CHENNAI

Appeal No. E/41033/2014

(Arising out of Order-in-Appeal No.42/2014 dated 11.2.2014 passed by the Commissioner of Central Excise (Appeals), Chennai)

M/s. Carborundum Universal  Ltd.Vs. CCE, LTU, Chennai

Appearance
Shri M. Kannan, Advocate for the Appellant
Shri B. Balamurugan, AC (AR) for the Respondent

CORAM- Honble Shri D.N. Panda, Judicial Member

Date of Hearing / Decision: 01.02.2016

Final Order No. 40137 / 2016

Learned counsel explains that the Domestic Tariff Area (DTA) unit having paid the service tax on reverse charge mechanism on behalf of SEZ unit of the company, the portion of such tax attributable to the SEZ is denied by the adjudicating authority to avail CENVAT credit thereof.

2. When service tax has been paid for no service availed, the same service tax if any already paid shall be treated as advance payment and should be appropriated in future against the tax demand of the appellant. With this direction, this appeal is disposed.

(Dictated and pronounced in open court)

(D.N. Panda)
Judicial Member

NF