2015 (2) TMI 959 - AT - Central Excise

CENVAT Credit - Whether the appellant is entitled to take Cenvat Credit on outward Transportation Service was dealt by the various Hon'ble High Courts and in the majority of the High Court decision it was held that Cenvat credit is available on Outward Transportation Service prior to 01.04.2008 - Held that - Issue came up before the Hon'ble High Court of Gujarat in Ellora Time Ltd. 2014 (3) TMI 567 - GUJARAT HIGH COURT wherein again it was held that Cenvat Credit on the above said service is available prior to 01.04.2008. In the light of the majority decision of the Hon'ble High Court I am of the view that the appellant is entitled to get Cenvat Credit on Outward Transportation Service in the light of the larger bench decision in ABB Ltd 2009 (5) TMI 48 - CESTAT, BANGALORE . - Decided in favour of assessee.

Summary

Issues:
1. Denial of input service credit on Outward Transportation Service.
2. Availability of Cenvat Credit on input service on Outward Transportation Service.
3. Interpretation of High Court decisions on Cenvat Credit prior to 01.04.2008.

The judgment revolves around the denial of input service credit on Outward Transportation Service to the appellant during a specific period. The impugned order rejected the appellant's claim for Cenvat Credit on this service, asserting that such credit is only available up to the place of removal. The appellant contended that various High Court decisions, including those of the Hon'ble High Courts of Gujarat and Karnataka, supported the availment of Cenvat Credit on Outward Transportation Service before 01.04.2008. Conversely, the respondent relied on a decision by the Vesuvious India Ltd. to oppose the Cenvat Credit claim.

After hearing both parties and considering their arguments, the judge analyzed the issue of entitlement to Cenvat Credit on Outward Transportation Service. The judge noted that several High Court decisions supported the availability of Cenvat Credit on this service before 01.04.2008. Specifically referencing the decision of the Hon'ble High Court of Gujarat in Ellora Time Ltd., which reiterated the availability of Cenvat Credit on Outward Transportation Service pre-2008, the judge concluded that the appellant should be allowed to claim the credit. The judge also cited the larger bench decision in ABB Ltd. to support this interpretation.

Ultimately, the impugned order denying the input service credit on Outward Transportation Service was set aside, and the appeal was allowed with consequential relief. The judgment highlights the significance of High Court decisions in determining the availability of Cenvat Credit on specific services and emphasizes the need to align with the majority view expressed in such decisions for consistent application of tax laws.