Cenvat Credit Utilisation for GTA Service Tax upheld for the pre-amendment period, with consequential refund relief.

Cenvat credit could be used to pay service tax on GTA services for the period before the relevant amendment, because no legal bar existed to such utilisation and Rule 3(4)(e) of the Cenvat Credit Rules, 2004 permitted credit for payment of service tax on output services. On that basis, the assessee's payment through Cenvat credit was treated as valid, and refund relief followed as consequential relief.

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Issues: Whether Cenvat credit could be utilised to pay service tax on GTA services for the period prior to the relevant amendment, and whether refund relief was therefore admissible.

Analysis: The Tribunal followed the settled position that there was no legal bar to using Cenvat credit for payment of service tax on GTA services. It relied on the principle reflected in Rule 3(4)(e) of the Cenvat Credit Rules, 2004, under which Cenvat credit could be used for payment of service tax on output service. Since the period involved was prior to the amendment of the Rules, the assessee's utilisation of credit for the disputed service tax payment was held to be in order.

Conclusion: The assessee was entitled to utilise Cenvat credit for payment of the service tax on GTA services, and the appeal was allowed with consequential relief.

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