2011 (7) TMI 334 - AT - Central Excise

Documents for Availing Cenvat credit - GTA services - recipients of service - service tax paid through TR-6 challan - deny credit on the ground that TR-6 challan was not a specified document for taking credit under Cenvat Credit Rules, 2004 - Tribunal has been consistently taking a view that credit is admissible on the basis of TR-6 challans even prior to 16.03.05 - It is only in one of 11 cases that Revenue has filed an appeal and even in that case, there is no indication that a stay has been granted - Decided in favour of assessee.

Summary

Issues:
- Admissibility of cenvat credit on the basis of TR-6 challans for GTA services received.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad, addressed the issue of whether cenvat credit could be availed based on TR-6 challans for GTA services received. The respondent had paid service tax through TR-6 challan for the services received and claimed credit under the Cenvat Credit Rules, 2004. The Revenue proposed to deny this credit, arguing that TR-6 challan was not a specified document for taking credit. The Tribunal noted that the Revenue was appealing against the decision to allow the credit.

The Revenue contended that there were previous decisions supporting the respondent's position that cenvat credit could be claimed using TR-6 challans even before the relevant amendment. The Commissioner (Appeals) had cited 11 decisions in the order, including the case of Nestle India Ltd. Vs. CCE Goa, where the Revenue had filed an appeal. The Tribunal acknowledged the Revenue's challenge to the Commissioner's decision in this case.

After hearing both sides, the Tribunal observed that it had consistently held that credit could be availed based on TR-6 challans even prior to the specified amendment date. The Tribunal highlighted that out of the 11 cases cited, only one had an appeal filed by the Revenue, with no indication of a stay being granted. Relying on precedent Tribunal decisions, the Tribunal concluded that the credit taken by the respondent using TR-6 challans was admissible. Consequently, the appeal filed by the Revenue was rejected.

In conclusion, the Tribunal's judgment upheld the admissibility of cenvat credit based on TR-6 challans for GTA services received, in line with consistent Tribunal decisions and precedents, despite the Revenue's challenge. The decision provided clarity on the eligibility of TR-6 challans as a valid document for claiming credit under the Cenvat Credit Rules, 2004.