2012 (3) TMI 35 - AT - Service Tax

Cenvat credit on service tax paid on outward transportation of the goods from the place of removal Held that - In view of the decision in case of CST, Bangalore Vs. ABB Ltd. (2011 - TMI - 203985 - Karnataka High Court) this issue stands decided in favour of the assessee. Whether credit can be taken on basis of TR-6 challan - period prior to 16.6.2005 - document under Rule 9(1)(e) of Cenvat Credit Rules Held that - In view of the decision in case of Gaurav Krishna Ispat (I) Pvt. Ltd. Vs. CCE (2008 - TMI - 31348 - CESTAT New Delhi) this issue stands decided in favour of the assessee.

Summary

Issues Involved:
1. Cenvat credit on service tax paid on outward transportation of goods
2. Availment of Cenvat credit on TR-6 challan

Issue 1: Cenvat Credit on Service Tax Paid on Outward Transportation of Goods

The judgment addresses the issue of whether Cenvat credit can be claimed on service tax paid for outward transportation of goods from the place of removal. The period under consideration is January 2005 to December 2005. The decision of the Karnataka High Court in the case of CST, Bangalore Vs. ABB Ltd. 2011 (23) STR 97 (Kar.) has already settled this issue in favor of the assessee. The judgment states that the appeal filed by the appellant is allowed with consequential benefit due to the favorable decision in the mentioned case.

Issue 2: Availment of Cenvat Credit on TR-6 Challan

The second issue in the appeal involves two contested matters. Firstly, it questions whether Cenvat credit can be availed on service tax paid for outward transportation from the place of removal. Secondly, it examines whether the TR-6 challan is a prescribed document for claiming Cenvat credit, especially for the period before 16.6.2005 when TR-6 challan was specifically mentioned as a document under Rule 9(1)(e) of the Cenvat Credit Rules. The judgment highlights that both these issues have been decided in favor of the assessee. The first issue finds precedent in the case of CST, Bangalore Vs. ABB Ltd. 2011 (23) STR 97 (Kar.), while the second issue is supported by the decision in the case of Gaurav Krishna Ispat (I) Pvt. Ltd. Vs. CCE 2009 (13) STR 629 (Tri.-Del.). Consequently, the appeal is allowed for both issues with consequential benefits, leading to the favorable outcome for the appellants.

In conclusion, the appellate tribunal, CESTAT, New Delhi, ruled in favor of the appellants on both issues raised in the appeals. The decisions were based on established legal precedents and interpretations of relevant rules and regulations. The judgment provides clarity on the availment of Cenvat credit on service tax paid on outward transportation of goods and the validity of claiming such credit using the TR-6 challan. The pronouncement of the judgment in open court signifies the finality of the decision, allowing the appellants to benefit from the favorable rulings.