9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 1034 - AT - Central ExciseCENVAT Credit disallowed - CREDIT availed on Goods Transport Agency output services for the period May 2005 to March 06 which the appellant had availed after taking 75% abatement under Notification No. 32/2004-ST read with Notification No. 12/2003-ST as amended - taking of credit on the TR-6 challan - Held that - We hold that the appellant have rightly availed CENVAT Credit being an amount paid towards Goods Transport Agency service. We further hold that the appellant is entitled to CENVAT Credit taken on the basis of TR-6 challan which is a notified documents for availing credit and being a procedural issue will apply retrospectively. We further hold that the input service like Courier service Xerox service and rent-a-cab operator service are input services in relation to business of the appellant as a manufacturer and service provider and as such the appellant has rightly availed the CENVAT Credit on the input. Thus the impugned order is set aside. The appeal is allowed with consequential benefit. The appellant has admittedly paid 50% of the impugned demand by way of pre-deposit. As such we direct the adjudicating authority to refund the amount within a period of two months from production of a copy of this order with interest as per rule. - Decided in favour of assessee
Issues:
1. Disallowance of CENVAT Credit on Goods Transport Agency output services. 2. Disallowance of credit taken on TR-6 challan. 3. Disallowance of CENVAT Credit on input services like Courier Service, Xerox service, Rent-a-cab service. Analysis: Issue 1: Disallowance of CENVAT Credit on Goods Transport Agency output services The appellant, a manufacturer and service provider, was issued a show-cause notice for disallowing CENVAT Credit availed on Goods Transport Agency services. The Revenue alleged suppression of facts and non-disclosure of credit details. The adjudicating authority confirmed the notice along with interest and penalty. The appellant appealed, arguing that credit of tax paid on transport services is admissible as an input service. They relied on a Tribunal ruling stating that the condition of non-availment of CENVAT Credit on input services related to the service provider, not the recipient. The Tribunal held in favor of the appellant, allowing the CENVAT Credit on Goods Transport Agency services. Issue 2: Disallowance of credit taken on TR-6 challan The appellant was also asked to show cause for disallowing credit taken on TR-6 challan, which was not a prescribed document for availing CENVAT Credit. The appellant contested this, citing a Tribunal ruling that TR-6 challan is a valid document for taking credit under the Cenvat Credit Rules. The Tribunal upheld this argument, stating that TR-6 challan is a valid document for availing credit, applying retrospectively. Issue 3: Disallowance of CENVAT Credit on input services like Courier Service, Xerox service, Rent-a-cab service The appellant faced disallowance of CENVAT Credit on input services like Courier Service, Xerox service, and Rent-a-cab service, as they were deemed unrelated to the manufacture of final products. The appellant argued that these services were essential for their business operations as both a manufacturer and service provider. The Tribunal agreed, stating that these services were in relation to the appellant's business and allowed the CENVAT Credit on these inputs. In conclusion, the Tribunal set aside the impugned order, allowing the appeal with consequential benefits. The appellant was directed to be refunded the pre-deposit amount with interest.
|
