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2023 (6) TMI 952 - AT - Service TaxCENVAT Credit - input services - Goods Transport Agency (GTA) - period from April, 2009 to September, 2009 and from October, 2009 to March, 2010 - HELD THAT - In terms of Rule 2 (l) of the Cenvat Credit Rules, 2004, the input service means, used by the provider of taxable service for providing output service. As per the said definition, nowhere, it is restricted that the input service should have correlation with the output service. The Adjudicating Authority has taken a presumptive view that the input service is to be utilized for providing the same output service. This issue is dealt by this Tribunal in the case of CCE, TIRUPATHI VERSUS SHARIFF MOTORS 2009 (3) TMI 155 - CESTAT, BANGALORE , wherein this Tribunal has observed unless the vehicles are received and sold, there would not be any servicing of the same. Moreover the definition of the input service is broad enough to cover the input service availed by the Respondents and also the output service rendered by them. We do not find any merit in the appeal of the Revenue. The Respondents are rightly entitled for the credit. Thus, the appellant is entitled to take the cenvat credit of input service on GTA for transportation of new vehicle to their premises and the same can be utilized for providing output service i.e. servicing of the motor vehicles - appeal allowed.
Issues involved:
The appeal against disallowance of cenvat credit on Goods Transport Agency (GTA) services along with penalty and interest. Details of the Judgment: Issue 1: Disallowance of cenvat credit on GTA services The appellant availed cenvat credit on GTA services for inward transport of new vehicles and used it for servicing motor vehicles. The Revenue contended that the credit cannot be utilized for vehicles transported to the appellant's place. However, the Tribunal referred to a previous case where cenvat credit on GTA services was allowed, stating that the input service need not have a direct correlation with the output service. The Tribunal held that the appellant is entitled to the cenvat credit for GTA services for transporting new vehicles to their premises, which can be used for servicing motor vehicles. Decision: The impugned order disallowing cenvat credit on GTA services was set aside, and the appeal was allowed with any consequential relief.
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