2015 (2) TMI 433 - AT - Service Tax

Admissibility of CENVAT credit on the courier services - Held that - Following decision of CCE vs. Ambalal Sarabhai Enterprises Limited 2014 (1) TMI 118 - GUJARAT HIGH COURT - CENVAT credit of service tax paid on Courier Services is admissible to the appellant. - Decided in favour of assessee.

Summary

Issues:
Admissibility of CENVAT credit on courier services.

Analysis:
The appeal was filed concerning the admissibility of CENVAT credit on courier services availed by the appellant. The appellant argued that the courier services were essential for their business activities, including sending sale-related documents and samples for approval to customers. The appellant's consultant cited a judgment by the Gujarat High Court supporting the admissibility of similar credit on courier services. On the other hand, the Revenue contended that the credit for courier services was not admissible based on a Punjab & Haryana High Court order and a CBEC Circular, along with a CESTAT Bangalore order. After considering both arguments, the Tribunal examined the case records and referred to the judgment of the Gujarat High Court in a similar matter. The Gujarat High Court had previously ruled that courier services used by a manufacturer for transportation of goods and bringing inputs into the factory were covered under the definition of input services. Consequently, the Tribunal held that the CENVAT credit of service tax paid on courier services was indeed admissible to the appellant. Therefore, the appeal was allowed based on the settled proposition of law and the observations made.

This detailed analysis of the judgment highlights the key arguments presented by both parties, the legal precedents cited, and the final decision reached by the Tribunal based on the interpretation of relevant laws and previous judgments.