2010 (3) TMI 453 - AT - Service Tax

Cenvat Credit-Input Service- whether the appellants are eligible for Cenvat credit of service tax paid on GTA service availed for outward transportation of finished goods from the factory to the customer s premises. Held that-C.B.E.C. Circular dated 23.8.2007 clarifying that credit of service tax paid on GTA Service for ownership of goods in transit remained with supplier. Sales claimed as made on FOR basis without producing any evidence. Cenvat credit not admissible.

Summary

Issues Involved:
Whether the appellants are eligible for Cenvat credit of service tax paid on GTA service for outward transportation of finished goods on F.O.R. basis.

Analysis:
The only issue in this case was whether the appellants could claim Cenvat credit for service tax paid on GTA service for transporting finished goods to customer premises on F.O.R. basis. The Asst. Commissioner had disallowed the credit, leading to an appeal. The Commissioner (Appeals) upheld the Asst. Commissioner's decision, prompting the current appeal.

None appeared for the appellants during the hearing. However, the appellants had previously requested a decision based on the judgment of the Hon'ble Punjab & Haryana High Court in a specific case, claiming their sales were on F.O.R. basis.

During the hearing, the learned D.R. reiterated the Commissioner (Appeals)' findings, emphasizing the need for evidence to prove sales were on F.O.R. basis. The D.R. argued that without such evidence, the appeal lacked merit.

The Tribunal carefully considered the submissions and reviewed the records. Referring to a relevant Board's Circular, it highlighted the conditions necessary for claiming Cenvat credit for GTA service tax, specifically emphasizing the requirement of sales being on F.O.R. basis. The Tribunal noted that the appellants had only claimed their sales were on F.O.R. basis without providing substantial evidence to support this claim. As a result, the Tribunal concluded that without concrete evidence, the appellants' claim could not be accepted, and therefore, Cenvat credit for service tax paid on outward transportation was not admissible. Consequently, the appeal was dismissed, upholding the previous decision.