2011 (9) TMI 323 - AT - Service Tax

CENVAT Credit Rules 2004 - Manufacturer of sugar and bagasse is one of the by products - credit taken on service tax paid on GTA services by the appellants in transporting bagasse - Held that the period prior to 1.4.2008 GTA service utilized for outward transportation of final products of the assessee has to be treated as input service in the light of the decision of the Hon ble High Court of Karnataka in the case of Commissioner of C. Ex. & S.T. LTU Bangalore Vs. ABB Limited 2011 -TMI - 203985 - KARNATAKA HIGH COURT - Decided in favor of assessee.

Summary

The Appellate Tribunal CESTAT, Bangalore allowed the appeal of a sugar manufacturer regarding service tax credit on transportation of bagasse. The tribunal set aside the order of the Commissioner and granted relief based on the treatment of GTA service as input service according to a High Court decision.