2014 (4) TMI 1062 - AT - Central Excise

Denial of CENVAT Credit - outward transportation service - Held that - Appellant has complied with the conditions of CBEC Circular No. 97/8/2007 dated 23.08.2007. In these circumstances, the appellant is entitled to take input service credit on outward transportation service. impugned order deserves no merits hence the same is set aside. - Decided in favour of assessee.

Summary

Issues:
- Application for early hearing
- Application for Condonation of Delay
- Entitlement to input service credit post 01.04.2008

Application for early hearing:
The appellant had filed applications for early hearing of the appeals, which became infructuous as the appeals and stay applications were listed on the same day. The Tribunal dismissed the early hearing application as infructuous.

Application for Condonation of Delay:
The appellant initially filed a composite appeal, which was later corrected to a second appeal due to a procedural error. Seeking condonation of delay in filing the present appeal, the Tribunal allowed the application after being satisfied with the reasons provided by the appellant.

Entitlement to input service credit post 01.04.2008:
The main issue revolved around whether the appellant was entitled to take input service credit post 01.04.2008 after complying with the conditions of CBEC Circular No.97/8/2007. Referring to a previous case, the Tribunal held that if the assessee complied with the conditions of the circular, they were entitled to take input service credit on outward transportation service. After hearing both sides and reviewing the records, the Tribunal found that the appellant had indeed complied with the circular's conditions. Consequently, the Tribunal held that the appellant was entitled to input service credit on outward transportation service and set aside the impugned order, allowing the appeals filed by the appellant with consequential relief. The stay applications were also disposed of accordingly.

This judgment highlights the importance of compliance with circulars for claiming input service credit and the Tribunal's role in ensuring adherence to such regulations for entitlement to benefits.