2013 (9) TMI 714 - AT - Service Tax

CENVAT credit - Out of turn hearing Held that - allow the applications for out of turn of appeals issues involved in this case are identical to the case court relied upon Parth Poly Wooven Pvt.Ltd. (2011 - (4) TMI 975 - GUJARAT HIGH COURT). CENVAT credit - Whether the assessee had availed CENVAT Credit of the Service Tax paid under the category of Goods Transport Agency and inward as well as outward transportation charges during the period Court followed the judgement of COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, BANGALORE Versus M/s ABB LTD. and others (2011 (3) TMI 248 - KARNATAKA HIGH COURT) Held that - Assessees were eligible to avail the CENVAT Credit of the Service Tax paid on the Goods Transport Agency services appeal decided in favour of assessee.

Summary

Issues:
- Eligibility of availing CENVAT Credit for Service Tax paid under Goods Transport Agency and transportation charges.

Analysis:

Issue 1: Eligibility of CENVAT Credit for Goods Transport Agency Services
The judgment addresses the issue of whether the appellant can avail CENVAT Credit for Service Tax paid under Goods Transport Agency services and transportation charges during the period May 2005 to October 2006. Both lower authorities had ruled against the appellant, citing Rule 2(l) of CENVAT Credit Rules, which defines Output and Input services and excludes Goods Transport Agency services from eligible services for CENVAT Credit. However, the Hon'ble High Court of Karnataka in the case of ABB Limited held that assessees were eligible to avail CENVAT Credit for Service Tax paid on Goods Transport Agency services until 01.03.2008. The judgment also references the decision of the Hon'ble High Court of Gujarat in the case of Poly Wooven Pvt.Ltd., which supported the Karnataka High Court's view. Given the consistent rulings of two High Courts in favor of the assessee on the same issue, the Tribunal set aside the impugned orders and allowed the appeals.

Conclusion:
The Tribunal, after considering the precedents set by the High Courts of Karnataka and Gujarat, allowed the appeals, overturning the decisions of the lower authorities and permitting the appellant to avail CENVAT Credit for Service Tax paid on Goods Transport Agency services and transportation charges during the specified period. The judgment emphasizes the importance of judicial consistency in interpreting tax laws and upholding the rights of taxpayers based on established legal principles.