2014 (12) TMI 202 - HC - Service Tax

Cenvat credit eligibility of the assessee to utilize the cenvat credit taken by them of the service tax and of the central excise duty, for discharging the service tax liability on GTA services High Court admitted the appeal of Revenue against the order of Tribunal 2012 (7) TMI 738 - CESTAT, AHMEDABAD on following questions of law - Whether the CESTAT, WZB, Ahmedabad is right in allowing use of Cenvat credit for discharging Service Tax on the service falling under the category of transport of goods by road treating the same as an output service at the end of recipient who has used it as input service ? Whether the learned CESTAT, WZB, Ahmedabad is right in placing reliance on the judgment of the Hon ble High Court of Karnataka in the case of Aravind Fashions Limited 2011 (9) TMI 852 - KARNATAKA HIGH COURT where the facts are different?

Summary

The Gujarat High Court admitted the case and formulated substantial questions of law regarding the use of Cenvat credit for Service Tax on transport of goods by road. The court also questioned the reliance on a judgment from the High Court of Karnataka with different facts. Notice was issued to the other side, and a paper book was to be filed within 3 months.