CENVAT credit on outward GTA transportation was admissible before 1 April 2008 under the pre-amendment input service definition.

CENVAT credit on Goods Transport Agency service used for outward transportation of excisable goods from the factory to the buyer's premises was treated as admissible for the period before 1 April 2008. Following ABB Ltd., the commentary notes that, prior to the Rule 2(l) amendment substituting "from" with "upto", such transportation qualified as an input service. The assessee's claim was therefore consistent with the then-applicable legal position, and the Revenue's challenge failed.

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Issues: Whether CENVAT credit was admissible on Goods Transport Agency service used for outward transportation of excisable goods from the factory to the buyer's premises for the period prior to 1 April 2008.

Analysis: The High Court ruling in ABB Ltd. was followed to hold that, for the relevant period before the amendment substituting the word "from" with "upto" in Rule 2(l) of the CENVAT Credit Rules, 2004, transportation of goods from the factory to the buyer's premises through GTA service qualified as an input service. The assessee's claim was therefore consistent with the governing legal position.

Conclusion: The credit was held to be admissible and the challenge by the Revenue failed.

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