2014 (4) TMI 509 - AT - Central Excise

CENVAT CRedit - whether the respondents are eligible to avail CENVAT credit for the service tax paid on freight for outward transportation from the place of removal during the period March 2007 - Held that - Calcutta High Court in the case of Vesuvious India Ltd. (2013 (12) TMI 1025 - CALCUTTA HIGH COURT) had also granted temporary stay. Respectfully following the decisions of the Hon ble Karnataka High Court in the case ABB Ltd. (2011 (3) TMI 248 - KARNATAKA HIGH COURT) and Hon ble Gujarat High Court in the case of Parth Poly Wooven Pvt. Ltd. (2011 (4) TMI 975 - GUJARAT HIGH COURT), I do not find any infirmity in the order of the Commissioner (Appeals) - Decided against Revenue.

Summary

Issues Involved:
Whether the respondents are eligible to avail CENVAT credit for service tax paid on freight for outward transportation from the place of removal during March 2007.

Analysis:

Issue 1: Eligibility of CENVAT credit for service tax on outward transportation

The key issue in this case revolves around the eligibility of the respondents to avail CENVAT credit for the service tax paid on freight for outward transportation from the place of removal during March 2007. The Tribunal referred to the decision of the Larger Bench in the case of M/s. ABB Ltd. Vs. CCE, Bangalore, where it was established that CENVAT credit is indeed eligible on service tax paid on outward transportation service. This decision was further upheld by the Hon'ble Karnataka High Court in the case of CCE, Bangalore Vs. ABB Ltd. and by the Hon'ble Gujarat High Court in the case of CCE Vs. Parth Poly Wooven Pvt. Ltd. The Tribunal, after considering these precedents, found no infirmity in the order of the Commissioner (Appeals) and rejected the appeal filed by the Revenue.

Conclusion:
The Tribunal, relying on established legal precedents, upheld the eligibility of the respondents to avail CENVAT credit for the service tax paid on freight for outward transportation from the place of removal during March 2007. The decision was based on the consistency of previous judgments from the Hon'ble Karnataka High Court and the Hon'ble Gujarat High Court, ultimately leading to the rejection of the Revenue's appeal.

This comprehensive analysis highlights the central issue of eligibility for CENVAT credit in the context of service tax on outward transportation, emphasizing the legal precedents that guided the Tribunal's decision in rejecting the Revenue's appeal.