2011 (8) TMI 280 - AT - Central Excise

Cenvat credit - Outward transportation - Rule 2(l) of CENVAT Credit Rules 2004 - On going through the order of Hon ble High Court of Gujarat in appellant s own case it is seen that the Hon ble High Court has clearly held in favour of the assessee as recorded in their Lordships order in Paragraphs 18 19 & 20 to clearly indicate that upto 1.4.2008 the appellants are eligible to avail CENVAT Credit of Service Tax paid on outward transportation - Appeal is allowed

Summary

Issues:
Service Tax on CENVAT Credit for outward transportation.

Analysis:
The case involved an application for out-of-turn hearing of an appeal concerning Service Tax on CENVAT Credit on outward transportation under the CENVAT Credit Rules, 2004. The counsel for the assessee referred to a previous judgment by the Hon'ble High Court in the assessee's favor in a similar case. The Tribunal found that the issue had already been decided in favor of the appellant by the High Court. Consequently, the appeal was taken up for disposal with the consent of both parties after allowing the application for out-of-turn hearing.

The central issue revolved around the eligibility of the appellant to avail CENVAT Credit for Service Tax paid on outward transportation from January 2005 to September 2007. The lower authorities had denied the credit based on Rule 2(l) of the CENVAT Credit Rules, 2004, which defined input service without covering the eligibility for availing CENVAT Credit on outward transportation. However, the High Court's order in the appellant's own case held that until April 1, 2008, the appellants were entitled to avail CENVAT Credit for Service Tax on outward transportation. The High Court did not consider the changed definition post-April 1, 2008, which was not relevant to the case up to September 2007. Therefore, the Tribunal, following the High Court's decision in the appellant's favor, set aside the impugned order and allowed the appeal.

In conclusion, the Tribunal ruled in favor of the assessee, allowing the appeal and setting aside the impugned order regarding the eligibility of the appellant to avail CENVAT Credit for Service Tax paid on outward transportation during the specified period. The decision was based on the High Court's previous judgment in the appellant's own case, which established the eligibility for CENVAT Credit on outward transportation until April 1, 2008, aligning with the period in question in this particular case.