2012 (11) TMI 150 - AT - Service Tax

CENVAT Credit availed on GTA Service - Held that - The issue regarding CENVAT Credit availed on outward freight for the period till 01.04.2008 has been settled by the Hon ble High Court of Karnataka in the case of COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, BANGALORE Versus M/s ABB LTD. and others 2011 (3) TMI 248 - KARNATAKA HIGH COURT in favour of the assessee. Also there is no stay against the same - in favour of assessee.

Summary

Issues:
- Admissibility of CENVAT Credit on GTA Service for transportation of finished goods
- Interpretation of relevant legal precedents and decisions

Analysis:

Issue 1: Admissibility of CENVAT Credit on GTA Service for transportation of finished goods
The case involved a dispute over the admissibility of CENVAT Credit availed on GTA Service for the transportation of finished goods by the respondents. The Revenue contended that once the final products are cleared from the place of removal, subsequent services should not be treated as inputs eligible for CENVAT Credit. They relied on previous Tribunal decisions to support their argument. However, the respondents argued that the issue had already been settled by the Hon'ble High Court of Karnataka in a previous case, where it was held in favor of the assessee. The Tribunal noted that the High Court had ruled in favor of the assessee on this issue until a specific date, and there was no stay against this ruling. Consequently, the Tribunal found no merit in the Revenue's appeal and dismissed it.

Issue 2: Interpretation of relevant legal precedents and decisions
The Tribunal considered the arguments presented by both sides and examined the legal precedents cited, including the decision of the Hon'ble High Court of Karnataka in the case of Commissioner of Central Excise & Service Tax, LTU, Bangalore vs. M/s.ABB Ltd. The Tribunal noted that the High Court's decision in the ABB Ltd. case had already settled the issue of CENVAT Credit availed on outward freight until a specified date in favor of the assessee. The Tribunal emphasized that there was no stay against this decision and that the substantial questions of law were answered in favor of the assessee and against the Revenue. Consequently, the Tribunal found no grounds to support the Revenue's appeal and dismissed it based on the settled legal position established by the High Court's ruling.

This detailed analysis of the judgment highlights the key issues of admissibility of CENVAT Credit on GTA Service and the interpretation of relevant legal precedents, ultimately leading to the dismissal of the Revenue's appeal by the Appellate Tribunal CESTAT, Kolkata.