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2015 (10) TMI 628 - AT - Service TaxAvailment of cenvat credit on Goods Transport Agency Service - Held that - Issue stands settled by the decision of Hon ble Madras High Court. In the case of Cheran Spinners Ltd., the Tribunal has allowed the credit which was challenged by Revenue before Hon ble Madras High Court. The Hon ble High Court has dismissed the C.M.A. and upheld the Tribunal s order vide 2013 (8) TMI 215 - MADRAS HIGH COURT . - High Court in the above order has considered all the issues including Board s circular dt. 3.10.2005 relied by the Revenue. By respectfully following the decision of Hon ble High court (supra), I hold that there is no infirmity in the order passed by Commissioner (Appeals). Accordingly, both the impugned orders are upheld - Decided against Revenue.
Issues involved:
Availment of cenvat credit on Goods Transport Agency Service and its utilization for payment of service tax. Analysis: 1. Issue of Availment of Cenvat Credit on Goods Transport Agency Service: The main issue in this case revolved around the availment of cenvat credit on Goods Transport Agency Service and its utilization for payment of service tax. The Revenue challenged the impugned orders where the Commissioner (Appeals) had allowed the appeals of the respondents based on previous Tribunal decisions. The Revenue relied on a Board's circular to defend their grounds. The Ld. Advocate reiterated the findings of the Commissioner (Appeals) and also cited a decision by the Hon'ble Madras High Court. After considering the submissions of both sides and reviewing the records, the Tribunal found that the issue had been settled by the decision of the Hon'ble Madras High Court in a related case involving Cheran Spinners Ltd. The High Court had upheld the Tribunal's decision in that case. The Tribunal analyzed the definitions of 'input service' and 'output service' under the Cenvat Credit Rules, emphasizing that the recipient of Goods Transport Agency services is entitled to the same benefits as a provider of input service for cenvat credit adjustment. 2. Utilization of Cenvat Credit for Payment of Service Tax: The Tribunal further delved into the interpretation of Rule 2(l) and 2(p) of the Cenvat Credit Rules, highlighting that these rules cover two different situations but allow for the adjustment of Service Tax liability against available cenvat credit. The Tribunal rejected the Revenue's reliance on a circular issued by the Board, stating that the circular would not assist the Revenue as the Rules already contemplated the adjustment of Service Tax liability against cenvat credit. The Tribunal endorsed the views of other High Courts and affirmed the decision of the Tribunal, ultimately dismissing the Civil Miscellaneous Appeal filed by the Revenue. By following the decision of the Hon'ble High Court and considering all relevant issues, the Tribunal held that there was no infirmity in the Commissioner (Appeals)'s order, thereby upholding the impugned orders and rejecting the appeals filed by the Revenue. In conclusion, the Tribunal's detailed analysis and reliance on legal provisions and precedents, particularly the decision of the Hon'ble Madras High Court, led to the rejection of the Revenue's appeals and the upholding of the Commissioner (Appeals)'s orders regarding the availment of cenvat credit on Goods Transport Agency Service and its utilization for payment of service tax.
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