Case Law Details
Paharpur Cooling Towers Ltd Vs Commissioner of Service Tax (CESTAT Kolkata)
CESTAT Kolkata held that Cenvat Credit can be utilized for payment of service tax on ‘import of services’. Accordingly, duty demand denying the same is unsustainable.
Facts- The Appellant are engaged in the manufacture of cooling towers and parts thereof at their factories located at various locations in India. A Show Cause Notice was issued to the Appellant demanding Service Tax of Rs. 58,52,901/- along with interest and penalty. The said Notice was adjudicated by the Commissioner vide impugned order, wherein the duty demanded in the Notice was confirmed along with interest and imposed equal amount of duty as penalty u/s. 78 of the Finance Act, 1994, read with Rule 15 of Cenvat Credit Rules, 2004. Aggrieved against the impugned order, the Appellant has filed the present appeal.
The appellant mainly contested denial of utilization of the CENVAT credit for discharging service tax liability in relation to Import of Service, on the ground that these services do not qualify as output services and denial of inter-adjustment of amount paid within various heads against the liability.
Conclusion- Held that the utilization of Cevat Credit for payment of service tax on ‘import of service’ by the Appellant is legally tenable. Accordingly, we hold that the impugned order confirming the demand on this count is not sustainable.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
