2011 (2) TMI 389 - AT - Service Tax

Cenvat credit - GTA services - The dispute relates to availment of credit of service tax paid on GTA services utilized in connection with the transport of the vehicles from the Hero Honda factory to the premises for paying service tax on services rendered under the category of authorized service station - Inasmuch as the issue in respect of identically placed dealer of Hero Honda has already been decided by the Tribunal the appeals by the Department are liable to be rejected

Summary

Issues: Appeals by the Department against common Order-in-Appeal related to availment of credit of service tax paid on GTA services utilized in connection with the transport of vehicles from the factory to the premises for paying service tax on services rendered under the category of authorized service station.

Analysis:

Issue 1: Availment of credit of service tax on GTA services
The respondent, a dealer of motor vehicles, utilized GTA services to transport vehicles from the factory to their showroom. The dispute revolved around the availment of credit of service tax paid on these GTA services for paying service tax under the category of authorized service station. The respondent contended that they are entitled to credit based on a Tribunal decision involving a similar dealer of Hero Honda.

Analysis: The Tribunal considered the Tribunal's decision in the case of Commissioner of Central Excise Vs. Shariff Motors, which involved a dealer of Hero Honda. The Tribunal in the previous case held that the dealer was entitled to credit for service tax paid on GTA services used for transporting vehicles to their showroom. The Tribunal rejected the Revenue's appeal, stating that the dealer was rightly entitled to the credit based on the broad definition of input service covering both the input service availed and the output service rendered. Therefore, the current appeals by the Department were liable to be rejected based on the precedent set by the previous Tribunal decision.

Conclusion: The appeals by the Department were rejected, and the cross-objections supporting the Order-in-Appeal were disposed of accordingly.

This detailed analysis of the legal judgment highlights the key issues, arguments presented, and the Tribunal's decision based on precedent and legal interpretation.