2016 (12) TMI 1183 - AT - Service Tax

CENVAT credit - GTA service - service tax paid on Goods Transport Agency (GTA) services for outward transportation of goods manufactured for the period prior to 1.4.2008 - Held that - the issue is no longer res integra and has been settled by the decision in the case of ABB Ltd. 2011 (3) TMI 248 - KARNATAKA HIGH COURT , where it was held that prior to amendment of definition of input service up to the place of removal in place of from the place of removal , the credit of service tax would be admissible - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Disallowance of Cenvat credit for service tax paid on outward transportation
- Applicability of the decision in the case of ABB Ltd.
- Admissibility of service tax credit pre-amendment

Analysis:

The case involves two appeals where the issue is the disallowance of Cenvat credit for service tax paid on outward transportation. The appellant, engaged in manufacturing, received show-cause notices for denial of Cenvat credit for service tax paid on outward transportation. The Assistant Commissioner confirmed the demand, leading to appeals before the Commissioner (A), who rejected them, prompting the present appeals.

In the written submissions, the appellant argued that the issue pertains to Cenvat credit of service tax paid on Goods Transport Agency (GTA) services for outward transportation of goods manufactured before 1.4.2008. The appellant cited the decision of the Hon'ble High Court of Karnataka in the case of ABB Ltd., which held that pre-amendment, the credit of service tax would be admissible. Additionally, the appellant referenced the case of Jinabakul Forge Pvt. Ltd. vs. CCE, where the Tribunal allowed relief based on the ABB Ltd. decision.

The Member (Judicial) considered the ABB Ltd. decision and concluded that the issue was settled in favor of the appellant. Relying on the Karnataka High Court ruling, the Member allowed both appeals, setting aside the impugned order and granting consequential relief. The operative portion of the Order was pronounced in Open Court on 15/11/2016.