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2011 (8) TMI 398 - AT - Service TaxEligibility of Cenvat credit - Credit has been taken on freight outward basis - The very same issue came up before the Hon ble High Court of Karnataka in the case of CCE & ST. LTU Bangalore Vs. ABB Ltd. 2011 -TMI - 203985 - KARNATAKA HIGH COURT in the tax appeal filed by the Revenue - Hon ble High Court has taken the view that till 01.04.08 the credit would be admissible up to the place of removal and a view has also been taken that the amendment is not clarificatory in nature - Decided in favour of assessee.
Issues: Admissibility of cenvat credit on freight outward basis, interpretation of Notification No.10/2008-CE-NT, clarificatory nature of the amendment.
In this judgment, the Appellate Tribunal CESTAT AHMEDABAD considered the case where the respondent (assessee) wrongly availed cenvat credit amounting to Rs.3,61,761/- during the period January 2005 to December 2007. The issue at hand was whether the credit availed on freight outward basis was admissible. The learned Commissioner (Appeals) had allowed the appeal filed by the respondents, citing the decision of the Larger Bench of the Tribunal in the case of India Cement. However, the Revenue appealed against this decision, arguing that the cenvat credit was not admissible based on the judgment of the Hon'ble High Court of Punjab & Haryana in the case of Ambuja Cements Ltd. and the case of GTC Industries Ltd. The Revenue also contended that the amendment brought about by Notification No.10/2008-CE-NT dated 01.03.08 should be considered clarificatory. The Tribunal analyzed the submissions and referred to the decision of the Hon'ble High Court of Karnataka in the case of CCE & ST., LTU, Bangalore Vs. ABB Ltd. The High Court had ruled that until 01.04.08, the credit would be admissible up to the place of removal, and the amendment was not clarificatory in nature. Considering the decision in the case of ABB Ltd. as the latest and comprehensive on the subject, the Tribunal concluded that the appeal lacked merit and rejected it. The Tribunal's decision was based on the interpretation of the law and the precedence set by the High Court, emphasizing that the issue was adequately addressed in the latest judgment.
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