CENVAT credit for GTA service tax remained permissible before withdrawal of the facility, so the demand was unsustainable.

CENVAT credit could be used to pay service tax on GTA service for the period in dispute because the facility was withdrawn only from the date of Notification No. 10/2008-C.E. (N.T.), 1 March 2008. Earlier Tribunal precedents supported the permissive position for the relevant prior period, so the appellate order dropping the demand was upheld as correct and unambiguous. The Revenue's challenge failed, and the demand based on such credit utilisation was not sustainable for that period.

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Issues: Whether the respondent was entitled to utilize CENVAT credit for payment of service tax on GTA service for the relevant period and whether the demand confirmed on that basis was sustainable.

Analysis: The Tribunal noted that the facility for utilization of CENVAT credit for payment of service tax on GTA service was withdrawn only by Notification No. 10/2008-C.E. (N.T.) dated 1-3-2008. For the period in dispute, the respondent's use of CENVAT credit was supported by earlier Tribunal decisions, and those precedents were held applicable. The appellate order dropping the demand was found to be correct and free from ambiguity.

Conclusion: The respondent was entitled to utilize CENVAT credit for payment of service tax on GTA service for the relevant period, and the Revenue's appeal was rejected.

Ratio Decidendi: Where the withdrawal of the facility to utilize CENVAT credit for GTA-related service tax operates only from the date of the relevant notification, prior periods remain governed by the earlier permissive position affirmed by precedent.

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