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2009 (8) TMI 413 - AT - Service TaxCenvat Credit Goods Transport Services- The issue involved in this case is regarding eligibility of the appellant to avail Cenvat credit on service tax paid on Goods Transportation Agencies beyond the place of removal. Both the lower authorities had held that the service tax paid on goods transportation charges beyond the place of removal is not an eligible input credit. The Commissioner (Appeals) has upheld the Order-in-Original. In the light of the decision of ABB Ltd. v. CCE & ST 2009 -TMI - 34139 - CESTAT BANGALORE held that order passed by commissioner is set-aside and appellant is eligible to avail credit.
Issues: Eligibility of the appellant to avail Cenvat credit on service tax paid on 'Goods Transportation Agencies' beyond the place of removal.
Analysis: The appeal was filed against the Order-in-Appeal passed by the Commissioner of Central Excise, Bangalore, regarding the eligibility of the appellant to claim Cenvat credit on service tax paid on goods transportation charges beyond the place of removal. The lower authorities had disallowed the credit, leading to a confirmation of disallowance of service tax, interest demand, and imposition of a penalty. The appellant argued that the issue was settled by a decision of the Larger Bench of the Tribunal in the case of ABB Ltd. v. CCE & ST. The Tribunal found that transportation of goods to customer's premises is an integral part of a manufacturer's business and should be considered an eligible input service. The Tribunal referred to specific paragraphs of the decision which supported the appellant's claim. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant, following the decision of the Larger Bench. In conclusion, the Tribunal held that the appellant was eligible to avail Cenvat credit on service tax paid on goods transportation charges beyond the place of removal. The decision was based on the precedent set by the Larger Bench in a similar case, emphasizing that transportation services are essential for the business activities of a manufacturer and should be considered as input services eligible for credit. The impugned order was set aside, and the appeal was allowed with consequential relief, if any, in favor of the appellant.
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