2012 (6) TMI 94 - AT - Service Tax

CENVAT credit on GTA services - period involved January, 2005 to February, 2006 - assessee contended that since the period involved in the present case is prior to 01.04.2008, accordingly the Service Tax paid on the Outward GTA Service, is available to them as CENVAT Credit - Held that - Issue of availing the CENVAT Credit on GTA service as an input service under Rule 2(l) of the CENVAT Credit Rules, 2004 is no more res integra. Accordingly, Order passed by the Commissioner (Appeals) is set aside and the Appeal is allowed in favor of assessee.

Summary

Issues:
Appeal against Order-in-Appeal regarding availing CENVAT Credit on GTA service as an input service under CENVAT Credit Rules, 2004.

Analysis:
The Appeal was filed against Order-in-Appeal No.57/Kol-VII/2011 dated 09.03.2011 passed by the Commissioner of Central Excise (Appeals), Kolkata. The Appellant paid Service Tax for availing Goods Transport Agency services and claimed CENVAT Credit under Rule 2(l) of CENVAT Credit Rules, 2004 for the period from January, 2005 to February, 2006.

The Appellant argued that based on a judgment by the Hon'ble Karnataka High Court in a specific case, the Service Tax paid on Outward GTA Service should be considered as CENVAT Credit since the period in question predates 01.04.2008. The Appellant contended that the Service Tax amount was paid in cash, making them eligible for the credit.

On the other hand, the learned AR (Deputy Commissioner) supported the findings of the Commissioner (Appeals) regarding the case.

The Tribunal noted that the issue of availing CENVAT Credit on GTA service as an input service under the CENVAT Credit Rules, 2004 had been settled by the Hon'ble Karnataka High Court in a previous judgment. Referring to the specific judgment, the Tribunal highlighted that the Appellant was entitled to claim CENVAT Credit on the Service Tax paid for GTA service during the period in question. The Tribunal set aside the impugned Order passed by the Commissioner (Appeals) and allowed the Appeal in favor of the Appellant.

Therefore, based on the interpretation of the relevant legal provisions and the precedent set by the Hon'ble Karnataka High Court, the Appellant successfully established their entitlement to claim CENVAT Credit on the Service Tax paid for availing GTA services during the specified period, leading to the favorable outcome of the Appeal.