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2019 (2) TMI 757 - AT - Central ExciseCENVAT credit - input services - outward transport (GTA service) - period January 2005 to March 2008 - Held that - The issue is no more res integra covered by the judgment of the Hon ble Supreme Court in the case of Vasavadatta Cements Ltd. 2018 (3) TMI 993 - SUPREME COURT , where it was held that tax paid on the transportation of the final product from the place of removal upto the first point, whether it is depot or the customer, has to be allowed - credit allowed - appeal allowed - decided in favor of appellant.
Issues:
Admissibility of cenvat credit on outward freight services for the period January 2005 to March 2008. Analysis: The appeal was filed against an order-in-appeal dated 13.12.2010, where the appellant availed cenvat credit of service tax paid on outward transport. The issue was whether this credit fell under the scope of the Cenvat Credit Rules, 2004. The appellant argued that the commission of sale was on FOB basis and cited a Supreme Court judgment to support their case. The Revenue reiterated the findings of the Commissioner (Appeals). The key issue in this appeal was the admissibility of cenvat credit on service tax paid on outward freight services for the period January 2005 to March 2008. The Tribunal referred to a Supreme Court judgment in the case of Vasavadatta Cements Ltd., which clarified that tax paid on transportation of the final product from the place of removal up to a certain point, whether it is a depot or the customer, should be allowed for cenvat credit. The Tribunal noted that an amendment in 2008 changed the expression from "from the place of removal" to "upto the place of removal," limiting cenvat credit availability only up to the place of removal. The Tribunal set aside the impugned order and allowed the appeal based on the Supreme Court judgment. In conclusion, the Tribunal's decision was based on the interpretation of the Cenvat Credit Rules and the Supreme Court judgment in the Vasavadatta Cements Ltd. case. The Tribunal found that the appellant was eligible for cenvat credit on service tax paid on outward freight services for the relevant period, as clarified by the Supreme Court regarding transportation charges up to a certain point from the place of removal.
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