2009 (5) TMI 393 - AT - Service Tax

Cenvat Credit- GTA Services- TR-6 Challan- Cenvat Credit was disallowed on the ground that credit was availed on the strength of TR-6 Challans during the period March, 2005 to June, 2005 in respect of GTA Services. In the light of the decision of CCE v. Essel Pro-Pack Ltd. 2007 -TMI - 2426 - CESTAT, MUMBAI held that TR-6 Challan is a valid document for taking Cenvat Credit. Appeal is allowed.

Summary

Issues: Disallowance of Cenvat credit based on TR-6 challans for GTA service during a specific period.

The judgment by the Appellate Tribunal CESTAT, New Delhi, involved the disallowance of Cenvat credit on the grounds that credit was availed based on TR-6 challans for GTA service between March 2005 to June 2005. The Tribunal referred to a previous case, Lahiri Laminates (P.) Ltd. v. CCE, where it was held that even before June 16, 2005, TR-6 challans could be used as valid documents for taking Cenvat credit. The Appellant relied on earlier judgments by the Tribunal in cases like Gaurav Krishna Ispat (I) (P.) Ltd. v. CCE Raipur, CCE v. Crompton Greaves Ltd., and CCE v. Essel Pro-Pack Ltd. to support their claim. The Departmental Representative argued that TR-6 challans were not valid documents for Cenvat credit before June 16, 2005, as per Notification No. 28/2005-CE. The Tribunal, considering the precedent and arguments, ruled in favor of the Appellant, setting aside the impugned order and allowing the appeal.

The Tribunal's decision rendered the order passed by the Commissioner (Appeals) unsustainable. The Tribunal, based on the precedent and reasoning provided, set aside the impugned order and allowed the appeal, granting consequential relief to the Appellant. The judgment highlights the importance of legal precedents, statutory provisions, and the interpretation of rules in determining the eligibility of Cenvat credit based on the documents presented, specifically TR-6 challans for GTA service during the specified period.