2012 (5) TMI 741 - AT - Central Excise

Summary

Issues involved: Entitlement to avail Cenvat credit of Service Tax paid on GTA services for transportation of goods.

Issue 1: Entitlement to Cenvat credit of Service Tax paid on GTA services

The issue revolved around whether the appellants were entitled to avail the benefit of Cenvat credit of Service Tax paid on the GTA services used for transporting goods from their factory gate to buyers' premises. The appellant relied on a Tribunal's Larger Bench decision in the case of ABB Ltd. vs. Commissioner, but the Commissioner (Appeals) did not follow this decision, citing a stay by the Hon'ble High Court of Karnataka. However, the Karnataka High Court later upheld the judgment of the Larger Bench, as reported in [2011 (23) STR 97 (Kar)]. Given this development, the Judicial Member set aside the impugned orders and allowed both appeals, granting consequential relief to the appellants.

In conclusion, the Appellate Tribunal CESTAT, New Delhi, in the case before Archana Wadhwa (Judicial Member), addressed the issue of entitlement to Cenvat credit of Service Tax paid on GTA services for transporting goods. The Tribunal referred to the conflicting decisions of the Tribunal's Larger Bench and the Commissioner (Appeals), ultimately relying on the Karnataka High Court's decision to grant relief to the appellants.