2011 (10) TMI 314 - AT - Service Tax

Appellate tribunal rejects department's stay application, upholds CENVAT credit on GTA service for outward transportation.

The appellate tribunal in Bangalore rejected the department's stay application and dismissed the appeal against granting CENVAT credit on GTA service for ... CENVAT credit on GTA service availed for outward transportation of excisable products from factory to buyers' premises - Period involved April 2005 to May 2006 – Held that:- In the instant case, Commissioner granted the benefit to the assessee and the same is in accordance with the ruling of the High Court in the case of Commissioner Vs. ABB Ltd. (2011 - TMI - 203985 - Karnataka High Court) holding that, for any period prior to 1.4.2008 (the date with effect from which the word 'upto' was substituted for the word 'from' in clause (ii) of Rule 2(l) of the CENVAT Credit Rules, 2004), GTA service utilized for outward transportation of goods from the factory of its production to the premises of the buyer was an 'input service' eligible for CENVAT credit. - Decided against the Revenue. The appellate tribunal in Bangalore rejected the department's stay application and disposed of the appeal finally. The appeal was against granting CENVAT credit on GTA service for outward transportation of excisable products. The tribunal upheld the lower appellate Commissioner's decision based on a relevant judgment of the Karnataka High Court. The appeal was dismissed, and the stay petition was also disposed of.