2017 (5) TMI 1294 - AT - Central Excise

CENVAT credit - GTA service in respect of outward transportation - transportation beyond the place of removal - Held that - the issue herein have been considered in detail by Hon ble Gujarat High Court in the case of Commissioner of Central Excise Vs Philips Carbon Black Ltd. 2016 (2) TMI 20 - GUJARAT HIGH COURT , where it was held that outward transport service used by the manufactures 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 Cenvat Credit Rules, 2004 - credit allowed - decided in favor of assessee.

Summary

Issues:
- Whether the appellant rightly took Cenvat credit on Goods Transport Agency Service for outward transportation of goods beyond the place of removal.

Analysis:
The appellant, M/s Jindal Pipes Ltd., filed an appeal against the Order-in-Appeal passed by the Commissioner (Appeals) Central Excise Meerut-II. The dispute pertained to the period prior to January 2005 to December 2006, before an amendment in the definition in Rule 2(l) of CCR, 2004. The main issue revolved around the eligibility of the appellant to claim Cenvat credit on Goods Transport Agency Service for outward transportation of goods beyond the place of removal.

During the hearing, the Tribunal referred to a judgment by the Hon'ble Gujarat High Court in the case of Commissioner of Central Excise Vs Philips Carbon Black Ltd. The High Court had interpreted the relevant provisions and ruled in favor of the assessee, stating that outward transport service used by the manufacturer for transportation of finished goods up to the premises of the purchaser falls within the definition of "input service" as provided in Rule 2(l) of the Cenvat Credit Rules, 2004.

Based on the legal interpretation provided by the Hon'ble High Court, the Tribunal allowed the appeal filed by M/s Jindal Pipes Ltd. and set aside the impugned order. The appellant was deemed entitled to consequential benefits as per the law. The decision was pronounced in open court, following the legal precedent established by the Gujarat High Court.

This judgment highlights the importance of legal interpretations in determining the eligibility of Cenvat credit on specific services related to the transportation of goods beyond the place of removal. The reliance on precedent set by higher courts showcases the significance of legal precedents in shaping decisions related to tax credits and excise matters.