Appellate Tribunal allows cenvat credit via TR-6 challans for GTA services

The Appellate Tribunal CESTAT, Ahmedabad, ruled in favor of the respondent, allowing the admissibility of cenvat credit based on TR-6 challans for GTA services received. The Tribunal held that the credit claimed using TR-6 challans was valid, citing previous decisions and precedents supporting this practice even before the relevant amendment date. Despite the Revenue's appeal and arguments against the use of TR-6 challans, the Tribunal rejected the appeal and affirmed the respondent's right to avail cenvat credit using the said documents.

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Issues:
- Admissibility of cenvat credit on the basis of TR-6 challans for GTA services received.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad, addressed the issue of whether cenvat credit could be availed based on TR-6 challans for GTA services received. The respondent had paid service tax through TR-6 challan for the services received and claimed credit under the Cenvat Credit Rules, 2004. The Revenue proposed to deny this credit, arguing that TR-6 challan was not a specified document for taking credit. The Tribunal noted that the Revenue was appealing against the decision to allow the credit.

The Revenue contended that there were previous decisions supporting the respondent's position that cenvat credit could be claimed using TR-6 challans even before the relevant amendment. The Commissioner (Appeals) had cited 11 decisions in the order, including the case of Nestle India Ltd. Vs. CCE Goa, where the Revenue had filed an appeal. The Tribunal acknowledged the Revenue's challenge to the Commissioner's decision in this case.

After hearing both sides, the Tribunal observed that it had consistently held that credit could be availed based on TR-6 challans even prior to the specified amendment date. The Tribunal highlighted that out of the 11 cases cited, only one had an appeal filed by the Revenue, with no indication of a stay being granted. Relying on precedent Tribunal decisions, the Tribunal concluded that the credit taken by the respondent using TR-6 challans was admissible. Consequently, the appeal filed by the Revenue was rejected.

In conclusion, the Tribunal's judgment upheld the admissibility of cenvat credit based on TR-6 challans for GTA services received, in line with consistent Tribunal decisions and precedents, despite the Revenue's challenge. The decision provided clarity on the eligibility of TR-6 challans as a valid document for claiming credit under the Cenvat Credit Rules, 2004.

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