Appellants win input service credit for GTA service transportation charges.

The appellants were found entitled to input service credit on GTA service. The Tribunal upheld that the appellants can claim input service credit for outward transportation of goods, as transportation charges incurred by the manufacturer for the clearance of final products were considered 'input service' before a specific amendment date. The Tribunal determined that the appellants had paid GTA service charges and were eligible for the credit, contrary to the Respondent's arguments. The impugned orders were set aside, and the appeals were allowed with consequential relief, if any.

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Issues Involved:
Entitlement to input service credit on GTA service.

Analysis:
The main issue in this case revolves around the entitlement of the appellants to input service credit on GTA service. The Respondent argued that since the sale took place at the factory gate, the appellants are not eligible for input service credit for outward transportation of goods. The Respondent relied on the decision of Roop Polymers Ltd. vs. CCE, Gurgaon and Board's Circular No.97/8/2007-ST. However, after hearing the Respondent and examining the records, it was determined that the crucial question is whether the appellants are entitled to input service credit for outward transportation of goods. Reference was made to the case of ABB Ltd. where the Karnataka High Court clarified the applicability of the expression 'place of removal' and the relevant amendments. The High Court's decision highlighted that transportation charges incurred by the manufacturer for the clearance of final products from the place of removal were included in the definition of 'input service' before 1.4.2008. Therefore, prior to this amendment, if the manufacturer availed GTA service and paid service charges, they were entitled to input service credit. It was noted that the appellants had borne the GTA service charges in this case, and the decision cited by the Respondent was deemed inapplicable. Following the judicial discipline, the Tribunal upheld that the appellants are indeed entitled to input service credit on GTA service, setting aside the impugned orders and allowing the appeals with consequential relief, if any.

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