2015 (10) TMI 1926 - AT - Service Tax

Denial of CENVAT Credit - Credit on service tax on freight charges for outward transportation from the place of removal - Held that - Karnataka High Court in the case of Commissioner of Central Excise & S.T. LTU Bangalore vs. ABB Limited - 2011 (3) TMI 248 - KARNATAKA HIGH COURT held that input service credit on transportation of the goods from the place of removal prior to 01.4.2008 is admissible. The Hon ble Gujarat High Court in the case of Commissioner of Central Excise & Customs vs. Parth Poly Wooven Pvt. Limited- 2011 (4) TMI 975 - GUJARAT HIGH COURT also supported the view of the Hon ble Karnataka High Court. Learned Authorised Representative for the Revenue relied upon the decision of the Hon ble Calcutta High Court in the case of CCE Kolkata -VI vs. Vesuvious India Limited - 2013 (12) TMI 1025 - CALCUTTA HIGH COURT . It is seen that the Hon ble High Court in that case had granted interim stay. - Decided against Revenue.

Summary

Issues involved: Denial of CENVAT credit on service tax on freight charges for outward transportation from the place of removal.

Analysis:

1. Issue of denial of CENVAT credit on service tax on freight charges:
The judgment involves the denial of CENVAT credit on service tax for outward transportation from the place of removal. The Hon'ble Karnataka High Court and the Hon'ble Gujarat High Court have held that input service credit on transportation of goods from the place of removal is admissible. The Hon'ble Gujarat High Court and Hon'ble Karnataka High Court decisions were cited in support of allowing the credit. On the other hand, the Revenue relied on the decision of the Hon'ble Calcutta High Court, where an interim stay was granted. Ultimately, the Tribunal, following the decisions of the Hon'ble Gujarat High Court and Hon'ble Karnataka High Court, rejected all appeals filed by the Revenue.

2. Judicial Precedents:
The judgment extensively refers to various judicial precedents to support the decision. The Hon'ble Karnataka High Court's decision in the case of Commissioner of Central Excise & S.T., LTU, Bangalore vs. ABB Limited, and the Hon'ble Gujarat High Court's decision in the case of Commissioner of Central Excise & Customs vs. Parth Poly Wooven Pvt. Limited were crucial in establishing the admissibility of input service credit on transportation of goods. These precedents played a significant role in the Tribunal's decision to reject the Revenue's appeals.

3. Conclusion:
In conclusion, the Tribunal, after considering the arguments from both sides and examining the relevant legal precedents, decided to reject all appeals filed by the Revenue. The judgment highlights the importance of judicial precedents in shaping decisions related to the admissibility of CENVAT credit on service tax for outward transportation. The reliance on decisions from different High Courts showcases the complexity and importance of legal interpretations in tax matters.