2015 (10) TMI 1150 - AT - Central Excise

Utilization of Cenvat Credit - Outward GTA Service - Held that - It has been held that there was no bar for utilization of Cenvat Credit, in respect of payment of service tax liability for Goods Transport Agency (GTA). No reason to interfere the order of the Commissioner (Appeals) - Decided in favour of assessee.

Summary

Issues:
Utilization of Cenvat Credit for payment of service tax in respect of Outward GTA Service provided during January 2005 to March 2006.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Mr. P.K. Das, addressed the issue of utilizing Cenvat Credit for paying service tax related to Outward GTA Service from January 2005 to March 2006. The Tribunal referred to various decisions by the Hon'ble High Court and Tribunal to establish the legal precedent on this matter. The Tribunal noted that there is no prohibition on using Cenvat Credit for settling service tax obligations concerning Goods Transport Agency (GTA) services. Therefore, the Tribunal concluded that there was no justification to interfere with the order of the Commissioner (Appeals) and consequently rejected the appeal filed by the Revenue.

In conclusion, the judgment clarified the permissibility of utilizing Cenvat Credit for the payment of service tax concerning Outward GTA Service provided during the specified period. The decision was based on established legal precedents and upheld the Commissioner (Appeals) order, dismissing the appeal filed by the Revenue.