2009 (7) TMI 1290 - AT - Central Excise

Summary

Issues involved: Appeal against order of Commissioner (Appeals) regarding availing credit of service tax and denial of credit for certain amounts.

Regarding availing credit of service tax: The appellant availed credit of service tax paid during a specific period, objected to on the basis of TR-6 challans validity and specific amounts related to freight. The appellant argued that they paid the service tax themselves and the credit should be admissible, citing a Tribunal decision supporting their claim.

Regarding denial of credit for specific amounts: The appellant referenced a case where the issue was decided in favor of the assessee by a Larger Bench. The Service Department Representative reiterated the Commissioner (Appeals) findings. The Tribunal found that TR-6 challans could be considered valid for taking credit, even prior to a specific date. Additionally, the Tribunal held that services availed for outward transportation of final products should be treated as an input service, enabling the manufacturer to take credit of the service tax paid on such services.

Conclusion: The Tribunal allowed the appeal with consequential relief based on the findings and reasoning presented by both sides.