2011 (8) TMI 366 - AT - Service Tax

Whether the credit of service tax paid on outward transportation service is admissible or not - in the Hon ble High Court of Karnataka in the case of ABB Limited (2011 -TMI - 203985 - KARNATAKA HIGH COURT) while deciding the tax appeal has held that cenvat credit of service tax paid on Goods Transport Agency service prior to 01.4.2008 is admissible and restriction of credit up to the place of removal would be admissible only after 01.4.2008 - Therefore reject the appeal filed by the Revenue.

Summary

The issue was whether credit of service tax on outward transportation service is admissible. The Revenue appealed, but the Tribunal upheld the credit based on decisions of High Courts in Karnataka and Gujarat. The appeal by the Revenue was rejected.