2009 (1) TMI 161 - AT - Service Tax

Cenvat credit of service tax paid on goods transport operator (sic) (agency) service for the transportation of iron steel and cement used by them in the civil work of the new plant - definition of input service for the purpose Cenvat Credit Rules includes services used in relation to setting up modernization renovation or repairs of a factory and also the service tax paid on inner transportation of inputs or capital goods - respondents are eligible for credit

Summary

The Appellate Tribunal CESTAT AHMEDABAD allowed the respondents to take Cenvat credit for service tax paid on goods transport operator (GTA) service used in setting up a new plant. The Revenue's appeal was dismissed as the transportation service was considered related to setting up the factory, making the respondents eligible for the credit.