2011 (7) TMI 620 - AT - Service Tax

Tribunal grants assessee cenvat credit for pre-1.3.2008 GTA service tax, dismissing Revenue's appeal

The Tribunal ruled in favor of the assessee, allowing them to utilize cenvat credit for service tax on GTA service for specific periods before 1.3.2008. ... Input service credit on GTA service for outward transportation of the goods - period involved from 01.10.2005 to 18.4.2006 and 19.4.2006 to 30.9.2006 - Held that:- Prior to 1.3.2008, the assessee can avail cenvat credit towards payment of service tax on GTA service. Therefore, period in the appeals is prior to 1.3.2008. Hence, the assessee is entitled to avail cenvat credit towards payment of service tax on GTA service. See CCE vs Auro Spinning Mills (2008 - TMI - 31486 - CESTAT NEW DELHI) - Decided in favor of assessee. Issues:1. Eligibility of the assessee to utilize cenvat credit for payment of service tax on GTA service from specific periods.Analysis:In Appeal No.ST/279/09, the Revenue challenged an order where the assessee was deemed eligible to use cenvat credit for paying service tax on GTA service from 01.10.2005 to 18.4.2006 onwards. On the other hand, in Appeal No.ST/387/09, the assessee appealed against a decision stating their ineligibility to utilize cenvat credit for service tax on GTA service from 19.4.2006 to 30.9.2006, resulting in confirmed demands against them.The central issue in both appeals revolved around whether the assessee had the right to apply cenvat credit for settling service tax on GTA service. The Tribunal referred to a precedent, CCE, Chandigarh vs. Auro Spinning Mills, where it was established that before 1.3.2008, the assessee could indeed utilize cenvat credit for paying service tax on GTA service. As the periods in question in both appeals were prior to 1.3.2008, the Tribunal ruled in favor of the assessee, allowing them to avail cenvat credit for service tax on GTA service. Consequently, the Revenue's appeal was dismissed, and the assessee's appeal was granted, with any necessary consequential relief.This judgment clarifies the entitlement of the assessee to leverage cenvat credit for service tax on GTA service during specific periods, aligning with the precedent set prior to 1.3.2008. The decision highlights the importance of adhering to established legal principles and precedents in determining eligibility for utilizing cenvat credit in service tax matters.