2016 (9) TMI 237 - AT - Service Tax

Demand of credit availed with interest imposition of penalty - Denial of CENVAT credit GTA service handling of export cargo Held that - the issue has been covered in the case Panchmahal Steel Ltd v. Commissioner of Central Excise & Service Tax, Vadodara 2014 (4) TMI 490 - CESTAT AHMEDABAD . It has been decided that service tax credit of the GTA services was for movement of export cargo, being input services, allowing CENVAT credit on the same. Auctioneer service export survey - survey of export cargo services used for setting up of container freight station barred by limitation Held that - appellant had always indicated in their ST-3 returns, the availment of CENVAT credit and they acted bonafidely on an understanding that all the services were utilised in connection with the output services rendered by them which is cargo handling services , storage and warehousing services credit allowed. Setting up of new CSF outside the registered premises retainership consultancy - architect - soil investigation services Held that - the issue has been decided in the case of Sai Samhita Storages 2011 (2) TMI 400 - ANDHRA PRADESH HIGH COURT where the decision taken is in favor of appellant credit allowed appeal disposed off decided in favor of appellant.

Summary

Issues:
Denial of CENVAT credit for various services utilized, including GTA service, auctioneer service, export survey, and setting up of new container freight station.

Analysis:

Issue 1: Denial of CENVAT credit for GTA service
The appellant was denied CENVAT credit for GTA service utilized for handling export cargo. The Tribunal found that the service tax credit for GTA services used in transporting export cargo was justified, citing a previous Larger Bench decision in the case of Panchmahal Steel Ltd. The Tribunal also noted that the decision of the Larger Bench had been upheld by the High Court of Gujarat, establishing a precedent in favor of the appellant. Consequently, the Tribunal ruled in favor of the appellant regarding the availment of CENVAT credit on GTA services.

Issue 2: Denial of CENVAT credit for other services
The denial of CENVAT credit for services such as auctioneer service, export survey, and setting up of a container freight station was also challenged. The appellant argued that the demand on CENVAT credit for these services was time-barred as they had consistently reported the availment of credit in their ST-3 returns. The Tribunal agreed with the appellant, noting that the services used for setting up the container freight station were directly related to the output services provided by the appellant. Citing judicial precedents from the High Court of Andhra Pradesh and the Tribunal, the Tribunal found in favor of the appellant, allowing the appeal and setting aside the impugned order.

In conclusion, the Tribunal ruled in favor of the appellant, allowing the appeal and setting aside the order that denied CENVAT credit for various services. The decision was based on the established legal principles and precedents regarding the utilization of services for specific business purposes and the availment of CENVAT credit in compliance with the law.