CESTAT Upholds Rs. 57,812 Duty; Service Tax Not Creditable

The Appellate Tribunal CESTAT, New Delhi upheld the duty of Rs. 57,812 against the appellant, ruling that the Service Tax paid by the consignment agent for GTA services was not creditable as it lacked nexus with the manufacturing or business activities of the appellant. The appellant was instructed to pay the duty within four weeks, with compliance due by December 15, 2010.

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The Appellate Tribunal CESTAT, New Delhi confirmed duty of Rs. 57,812 against the appellant by denying credit of Service Tax paid by consignment agent for GTA services. The service availed by consignment agents of input manufacturers did not have any nexus with the manufacturing or business activity of the present appellant. The appellant was directed to deposit the duty amount within four weeks. Compliance was to be reported by December 15, 2010.

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