2013 (5) TMI 66 - AT - Central Excise

Admissibility of Cenvat credit - GTA services used for outward transportation of their final products from the factory to the premises of their customers Held that - The Hon ble High Court, in the case of Commissioner Vs. ABB Ltd. 2011 (3) TMI 248 held that CENVAT credit was admissible to the manufacturer of final products in respect of GTA service used for outward transportation of such products from the place of removal to the customers premises for a period prior to 01/04/2008. The period of dispute in the instant case is also prior to 01/04/2008. Appeal is allowed.

Summary

Issues:
1. Admissibility of CENVAT credit on GTA service for outward transportation of final products.
2. Consideration of Special Leave Petition (SLP) filed by the Department.
3. Precedent set by the Hon'ble High Court regarding CENVAT credit prior to 01/04/2008.

Admissibility of CENVAT Credit on GTA Service:
The central issue in this case revolved around the admissibility of CENVAT credit on GTA service used for outward transportation of final products. The appellant sought credit based on the precedent set by the Hon'ble High Court in the case of Commissioner Vs. ABB Ltd. The Tribunal noted that the substantive issue had already been settled against the Revenue for a period prior to 01/04/2008. The Tribunal concurred with the High Court's decision that CENVAT credit was admissible for GTA service used in transporting final products to customers' premises. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant.

Consideration of Special Leave Petition (SLP):
During the proceedings, the Department raised the issue of a Special Leave Petition (SLP) filed against the High Court's judgment. The Superintendent (AR) representing the Department requested to defer the hearing until the outcome of the SLP was known. However, the Tribunal observed that no specific details or records of the SLP were presented, and there was no indication of any civil appeal pending before the apex court or a stay on the High Court's judgment. Consequently, the Tribunal proceeded with the case, as there was no legal impediment to do so based on the information provided.

Precedent Set by the Hon'ble High Court:
The Tribunal referenced the judgment of the Hon'ble High Court in the case of ABB Ltd., which established the admissibility of CENVAT credit on GTA service for outward transportation of final products before 01/04/2008. Given that the period of dispute in the current case also fell before 01/04/2008, the Tribunal relied on the High Court's decision to support the allowance of CENVAT credit for the appellant. Consequently, the Tribunal set aside the impugned order and ruled in favor of the appellant, aligning with the established legal precedent.

In conclusion, the judgment by the Appellate Tribunal CESTAT Bangalore centered on the admissibility of CENVAT credit on GTA service for outward transportation of final products, considering the legal precedent set by the Hon'ble High Court. The Tribunal's decision favored the appellant, allowing the credit based on established legal principles and previous judgments. The Tribunal also addressed the Department's request to defer the hearing in light of a Special Leave Petition, highlighting the absence of specific details or legal restrictions that would warrant postponing the proceedings.