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2015 (10) TMI 1576 - AT - Service TaxDenial of CENVAT Credit - GTA services - Held that - In the facts of this case it is the appellant who is the receiver of transport service. It is immaterial as to who facilitates the transportation to the appellant. Accordingly I hold that the appellant is entitled to service tax credit or CENVAT credit on the transportation charges incurred for transport of inputs and materials to its factory. - Decided in favour of assessee.
Issues:
1. Denial of CENVAT credit on Service Tax paid on GTA for transportation of inputs. Analysis: The appellant, a plastic manufacturer availing CENVAT credit, appealed against the denial of credit by the department on the grounds that the consignor, M/s Haldia Petrochemicals Ltd., had paid the Service Tax on GTA for transporting inputs. The appellant argued citing Circular No. 97/8/2007 that transportation of inputs qualifies as 'input service,' making the Service Tax eligible for credit. Referring to the Tribunal's ruling in Rathi Bars Ltd. Vs. CCE, Jaipur, the appellant contended that the Board's Circular supported their claim. The learned Counsel reiterated that the issue was covered by the Board's Circular and the Tribunal's previous rulings, emphasizing that the transport service receiver was the appellant, despite the transport being arranged by the supplier, HPL. The Revenue's objection was based on HPL not being a transport service provider. The appellant maintained that they were the actual receiver of the transport service, seeking allowance of credit with consequential benefits. In contrast, the learned A.R. supported the impugned order, arguing that the appellant was not the service receiver, and thus, the denial of credit was justified. After hearing both parties, the judge concluded that the appellant was indeed the receiver of the transport service, regardless of who facilitated the transportation. Consequently, the appellant was deemed entitled to service tax credit on transportation charges for inputs to their factory. The appeal was allowed, granting consequential benefits to the appellant.
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