2012 (6) TMI 95 - AT - Service Tax

CENVAT credit on GTA services - period involved January, 2005 to July, 2006 - assessee contended that since the period involved in the present case is prior to 01.04.2008, accordingly the Service Tax paid on the Outward GTA Service, is available to them as CENVAT Credit - Held that - Issue of availing the CENVAT Credit on GTA service as an input service under Rule 2(l) of the CENVAT Credit Rules, 2004 is no more res integra. Accordingly, Order passed by the Commissioner (Appeals) is set aside and the Appeal is allowed in favor of assessee.

Summary

Issues involved:
Application for waiver of predeposit of CENVAT Credit of Service Tax and penalty amount for the period January 2005 to July 2006 on the eligibility of the Applicant regarding the CENVAT Credit of the Service Tax paid on the GTA service as an input service under Rule 2(l) of the CENVAT Credit Rules, 2004.

Analysis:

1. Waiver of Predeposit: The Application sought waiver of predeposit of CENVAT Credit of Service Tax and equivalent penalty amount. The Tribunal found that the Appeal itself could be disposed of without predeposit. Consequently, the predeposit of the CENVAT Credit of Service Tax and penalty amount was waived, and the Appeal was taken up for disposal.

2. Appeal Against Order-in-Appeal: The Appeal was filed against the Order-in-Appeal No.38/JSR/2011 dated 11.07.2011 passed by the Commissioner (Appeals), Central Excise and Service Tax, Ranchi. The Appellant had paid Service Tax for availing Goods Transport Agency services and claimed CENVAT Credit under Rule 2(l) of CENVAT Credit Rules, 2004, for the period from January 2005 to July 2006.

3. Legal Interpretation: The Appellant contended that based on a judgment of the Hon'ble Karnataka High Court, the Service Tax paid on Outward GTA Service was eligible for CENVAT Credit, considering the period involved in the case was prior to 01.04.2008. The Tribunal noted that the issue of availing CENVAT Credit on GTA service as an input service was settled by the Hon'ble Karnataka High Court, allowing the Appellant to claim CENVAT Credit for the Service Tax paid on GTA service during the specified period.

4. Decision and Disposal: Relying on the judgment of the Hon'ble Karnataka High Court, the Tribunal held that the Appellant was entitled to the CENVAT Credit of the Service Tax paid on GTA service as an input service under Rule 2(l) of the CENVAT Credit Rules, 2004, for the period from January 2005 to July 2006. Consequently, the impugned Order passed by the Commissioner (Appeals) was set aside, and the Appeal was allowed. The Stay Petition was also disposed of in favor of the Appellant.

5. Conclusion: The Tribunal's decision clarified the eligibility of the Appellant to claim CENVAT Credit on Service Tax paid on GTA service, providing a favorable outcome based on the legal interpretation of relevant rules and precedents set by the Hon'ble Karnataka High Court. The judgment emphasized the importance of legal precedents in resolving tax-related disputes and ensuring consistency in decision-making.