CENVAT credit on Goods Transport Agency services upheld where the service qualifies as input service under the credit framework.

CENVAT credit was held admissible on service tax paid for Goods Transport Agency services received by the assessee as the service recipient, because the claim fell within the scope of "input service" under the applicable CENVAT credit framework. The issue was treated as covered by the Karnataka High Court decision in ABB Limited, and that authority supported acceptance of credit on GTA services. The assessee's entitlement was therefore upheld, the Revenue's appeals were found unsustainable, and the impugned orders were affirmed.

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Issues: Whether the assessee was entitled to avail CENVAT credit of service tax paid on Goods Transport Agency services received as a recipient of the service.

Analysis: The issue was held to be covered by the Karnataka High Court decision in ABB Limited, which had considered the relevant law on CENVAT credit and input service. Following that decision, the entitlement to credit on service tax paid on GTA services was accepted.

Conclusion: The assessee was entitled to avail the CENVAT credit, and the Revenue's appeals were not sustainable.

Final Conclusion: The impugned orders were affirmed and the Revenue's challenge failed.

Ratio Decidendi: CENVAT credit is available on service tax paid for Goods Transport Agency services where the service falls within the scope of input service under the applicable CENVAT credit framework.

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