2014 (6) TMI 58 - 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 2006 to June 2007 - Held that - CENVAT credit is eligible on service tax paid on GTA service prior to 1.4.2008 - Following decision of CCE, Bangalore Vs. ABB Ltd. 2011 (3) TMI 248 - KARNATAKA HIGH COURT - CCE Vs. Parth Poly Wooven Pvt. Ltd. 2011 (4) TMI 975 - GUJARAT HIGH COURT - 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 2006 to June 2007.

Analysis:
The Revenue filed an appeal against the Commissioner (Appeals) order setting aside the adjudication order. The key issue was the eligibility of the respondents to avail CENVAT credit for service tax paid on freight for outward transportation during a specific period. The Revenue relied on a decision from the Hon'ble Calcutta High Court, while the respondent's counsel cited judgments from the Hon'ble Karnataka High Court and the Hon'ble Gujarat High Court. The Hon'ble Karnataka High Court, considering a previous Tribunal decision, held that CENVAT credit is allowable on service tax paid on GTA service before April 1, 2008. Similarly, the Hon'ble Gujarat High Court shared the same view. The judgment from the Hon'ble Calcutta High Court, as mentioned by the Revenue, only granted temporary stay.

The Tribunal found that the decisions of the Hon'ble Karnataka High Court and the Hon'ble Gujarat High Court were directly relevant to the present case. Based on these precedents, the Tribunal concluded that there was no flaw in the Commissioner (Appeals) order. Consequently, the appeal filed by the Revenue was rejected. The judgment was dictated and pronounced in open court, providing a clear resolution to the issue at hand.