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of <h1>Assessee entitled to claim Cenvat credit on service tax for transportation charges beyond place of removal</h1> <h3>Commissioner of Central Excise, Bangalore-III Commissionerate Versus Triveni Engineering & Industries Ltd.</h3> Commissioner of Central Excise, Bangalore-III Commissionerate Versus Triveni Engineering & Industries Ltd. - 2012 (26) S.T.R. 406 (Kar.) , [2012] 36 STT ... Issues:- Entitlement to Cenvat credit on service tax paid on 'Goods Transportation Agencies' beyond the place of removal.- Interpretation of the term 'input service' in the context of Cenvat credit.Entitlement to Cenvat Credit on Service Tax Paid on Goods Transportation Agencies:The appeal in this case revolves around the eligibility of the assessee to avail Cenvat credit on service tax paid for transportation charges beyond the place of removal. The Tribunal allowed the appeal, stating that the assessee could indeed claim this credit. The assessing authority had initially issued a show-cause notice alleging wrongful availing of Cenvat credit on service tax paid for transportation charges. Subsequently, the Commissioner set aside the order and remanded the case for a fresh decision. The Tribunal, relying on the Larger Bench decision in ABB Ltd. v. CCE&ST, held in favor of the assessee. The High Court, in a similar case, had previously ruled that payment of service tax on transportation charges falls within the scope of 'clearance of final products from the place of removal,' allowing the assessee to claim Cenvat credit.Interpretation of the Term 'Input Service':The questions of law raised in this appeal pertain to the interpretation of the term 'input service' in the context of Cenvat credit. The Customs Excise and Service Tax Appellate Tribunal (CESTAT), Larger Bench, Bangalore, had previously ruled on this issue. The High Court, in a separate case involving ABB Ltd., had concluded that payment of service tax on transportation charges qualifies as an input service, enabling the assessee to avail Cenvat credit. The High Court upheld the Tribunal's decision, stating that the issue had already been addressed in a previous judgment. Consequently, the substantial questions of law were resolved in favor of the assessee and against the revenue.In conclusion, the judgment by the Karnataka High Court reaffirmed the entitlement of the assessee to claim Cenvat credit on service tax paid for transportation charges beyond the place of removal. The interpretation of the term 'input service' was clarified, emphasizing that payment of service tax on transportation charges falls within the ambit of input services, allowing the assessee to avail Cenvat credit. The decision aligns with previous rulings and upholds the assessee's right to claim such credits under the Cenvat Credit Rules.
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