2015 (11) TMI 1408 - AT - Central Excise

Reversal of CENVAT Credit - GTA service - Whether the appellant is required to reverse credit availed on GTA services on HR coils cleared as per Rule 3(5) of Cenvat Credit Rules 2004 - Held that - Decision of the Tribunal in the case of Lacto Cosmetics (Vapi) Pvt.Ltd. (2012 (12) TMI 642 - CESTAT AHMEDABAD ) as well as the decision of Punjab & Haryana High Court in the case of CCE Chandigarh-I vs.Punjab Steels (2010 (7) TMI 252 - PUNJAB AND HARYANA HIGH COURT). The decision of the Tribunal in the case of Lacto Cosmetics (Vapi) Pvt.Ltd. is per incuriam and is not applicable to the facts of this case. With these terms the appellant is not required to reverse credit on GTA services as per Rule 3(5) of Cenvat Credit Rules 2004. Accordingly the impugned order is set aside - Decided in favour of assessee.

Summary

The judgment concerns whether the appellant must reverse credit on GTA services for HR coils cleared. The appellant cited a High Court decision supporting no reversal, while the AR cited a Tribunal decision requiring reversal. The Tribunal found the Tribunal decision inapplicable and ruled in favor of the appellant, stating no reversal is needed as per Rule 3(5) of Cenvat Credit Rules, 2004. The impugned order was set aside, and the appeal was allowed with consequential relief.