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2017 (5) TMI 600 - AT - Central ExciseCENVAT credit - input service - GTA service - Held that - When appellant has sold the goods on FOR basis GTA services are part of inputs as defined u/r 2(l) of CCR, 2004 - reliance also placed in the case of CCE Vs. Parth Poly Wooven Pvt. Ltd. 2011 (4) TMI 975 - GUJARAT HIGH COURT , where it was held that the outward transport service used by the manufacturers for transportation of finished goods from the place of removal upto the premises of the purchaser is covered within the definition of input service provided in Rule 2(l) of the CCR, 2004 - appeal allowed - decided in favor of appellant.
Issues:
- Disallowance of Cenvat credit for GTA services to the appellant Analysis: The appellant, M/s Kanoria Sugar & General Manufacturing Company Ltd., appealed against Order-in-Original No. 47/2011 disallowing Cenvat credit for GTA services. Both parties were represented by counsels Shri Hit Chawla, Ms. Kanu Verma Kumar, and G.R. Singh. The Tribunal considered whether GTA services were valid input services under Rule 2(l) of the Cenvat Credit Rules, 2004. The Tribunal referred to the Hon'ble Gujarat High Court decision in CCE Vs. Parth Poly Wooven Pvt. Ltd. The High Court's decision highlighted the broad definition of "input service" and emphasized that outward transportation services could be considered input services under certain circumstances. The Tribunal concluded that GTA services were part of inputs as defined under Rule 2(l) and set aside the impugned order, allowing the appeal. In conclusion, the Tribunal found that GTA services used by the appellant for transportation of finished goods from the place of removal up to the premises of the purchaser fell within the definition of "input service" provided in Rule 2(l) of the Cenvat Credit Rules, 2004. The decision was influenced by the interpretation of the definition of "input service" as discussed in the Hon'ble Gujarat High Court decision, which emphasized the expansive nature of the definition and the inclusion of services indirectly related to the manufacture and clearance of final products. As a result, the Tribunal ruled in favor of the appellant, setting aside the disallowance of Cenvat credit for GTA services and allowing the appeal.
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