2012 (4) TMI 516 - AT - Central Excise

Availment of cenvat credit - GTA services - Held that - Commissioner (Appeals) has relied upon the Larger Bench decision of the ABB Ltd. to come to a conclusion that the appellants are eligible for the benefit of cenvat credit. This Larger Bench decision was challenged by the Revenue before the Hon ble High Court of Karnataka which in its judgment as reported at 2011 (3) TMI 248 - KARNATAKA HIGH COURT has upheld the view of the Larger Bench of the Tribunal - Decided against Revenue.

Summary

Issues:
Appeal against orders-in-appeal regarding eligibility for availing Cenvat credit on GTA services.

Analysis:
The judgment pertains to four appeals and a cross objection filed against orders-in-appeal. The Revenue contested the conclusion of the first appellate authority, claiming that the respondents were not entitled to the Cenvat credit for service tax paid on GTA services. While respondents No.1 to 3 did not appear, their advocates submitted written arguments, and an advocate represented respondent No.4. The judge, Mr. M.V. Ravindran, heard both sides and reviewed the records. Acknowledging the narrow scope of the issue, the judge proceeded with the appeals' disposal.

The main issue revolved around the eligibility of the assessees for availing Cenvat credit on GTA services with paid service tax. The judge noted that the Commissioner (Appeals) based their decision on the ABB Ltd. Larger Bench ruling, which allowed the appellants to claim the credit. The Revenue had challenged this ruling in the High Court of Karnataka, which, in its judgment, upheld the Tribunal's Larger Bench decision. Given the settled nature of the issue, the judge found no merit in the Revenue's appeals and consequently rejected them. Additionally, the cross objection filed by one of the respondents was also dismissed accordingly. The judgment was dictated and pronounced in court by Mr. M.V. Ravindran, J.