2018 (4) TMI 660 - AT - Central Excise

CENVAT credit - GTA Services - place of removal - Held that - the issue of availability of cenvat credit on outward GTA has been settled by the Hon ble Supreme Court in the case of Ultra Tech Cement Ltd. 2007 (3) TMI 738 - CESTAT AHMEDABAD , where it was held that the credit is not admissible from the place of removal to buyer s premises w.e.f. 1.4.2008 - the credit taken after 1.4.2008 should be prima facie available - During the period prior to 1.4.2008, the cenvat credit in respect of GTA service from place of removal was available. However no verification of documents was carried out as observed by the learned Commissioner that documentary evidence has not been produced in respect of the submission made by the appellant - appeal allowed by way of remand.

Summary

Issues involved: Admissibility of cenvat credit in respect of outward GTA service for the period May 2008 to August 2009.

Analysis:
1. Nature of Clearances and Applicability of Credit:
The appellant argued that based on various judgments, credit for GTA service is admissible for transport to depot and export goods, even post-1.4.2008. For sales to customers pre-1.4.2008, credit should be available. However, the Commissioner rejected this due to lack of documentary evidence.

2. Revenue's Contentions and Legal Precedents:
The Revenue supported the impugned order citing the Ultra Tech Cement Ltd. judgment that disallows credit post-1.4.2008. Several judgments were referenced to support this stance.

3. Tribunal's Decision and Remand:
The Tribunal noted the settled position post-Ultra Tech Cement Ltd. judgment regarding credit availability from 1.4.2008. It found prima facie admissibility for credit related to transport to depot and export goods. For sales pre-1.4.2008, credit should be available post that date. However, due to lack of document verification, the matter was remanded to the Commissioner for a fresh order.

Conclusion:
The Tribunal allowed the appeals by remanding the matter to the adjudicating authority for a fresh decision considering the Ultra Tech Cement Ltd. judgment and the observations made.