2018 (10) TMI 1644 - AT - Service Tax

CENVAT Credit - input services - GTA Services - amendment in the scope of place of removal - Held that - The matter remanded to the Adjudicating Authority for passing a fresh order after following the principles of natural justice by granting sufficient opportunity of personal hearing - appeal allowed by way of remand.

Summary

Issues involved: Entitlement for Cenvat credit in respect of GTA services prior to the amendment of the definition of Input Services.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Hon’ble Mr. Ramesh Nair and Hon’ble Mr. Raju, Member (Technical), revolves around the issue of whether the appellant is entitled to Cenvat credit for GTA services before the amendment of the definition of Input Services. The appellant's counsel, Shri Joseph Kodianthara, argued that a similar issue in their case was previously remanded by the Tribunal for fresh adjudication. He expressed no objection to remanding the current matter as well, citing past Tribunal orders from 2017. The Respondent's representative, Shri Sameer Chitkara, also did not object to the remand for a fresh decision. The Tribunal noted that in a previous order from 2017, a similar issue was dealt with, where the eligibility for Cenvat Credit of Service Tax paid on Goods Transport Agency Services was discussed. The Tribunal emphasized the need for evidence to support the appellant's claim regarding the ownership of goods and the basis of delivery. Consequently, the Tribunal decided to remand the current matter to the Adjudicating Authority for a fresh decision, ensuring the principles of natural justice are followed, and granting a fair opportunity for a personal hearing. The appeal was allowed, leading to a remand to the Adjudicating Authority for further proceedings.

This judgment highlights the importance of providing substantial evidence to support claims regarding Cenvat credit eligibility for GTA services. It underscores the need for a thorough examination of ownership transfer and delivery basis to establish entitlement to such credits. The decision to remand the matter for fresh adjudication demonstrates the Tribunal's commitment to ensuring a just and fair process, following established legal principles and granting parties adequate opportunities to present their case. The ruling emphasizes the significance of adhering to the principles of natural justice and granting parties a fair hearing in matters of tax credit eligibility, ultimately aiming for a just and equitable resolution.