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of <h1>Tribunal Allows CENVAT Credit on GTA Services for Outward Transportation</h1> The Tribunal held that services availed for outward transportation of final products qualify as 'input service' for CENVAT credit. Following the Larger ... CENVAT Credit on GTA service for outward transportation - upto place of removal - from place of removal - Whether the service availed by the assessee for outward transportation of their final products from the place of removal should be treated as 'input service' in terms of Rule 2(l) of the CENVAT Credit Rules, 2004 - Held that:- Following the decision in case of M/s ABB LTD.(2011 (3) TMI 248 - KARNATAKA HIGH COURT) that in relation to the period upto 31.3.2008, that the outward transportation of final products from the place of removal would be admissible for CENVAT credit. The assessees are entitled to claim CENVAT credit on GTA services availed for outward transportation of their final products from their factories (place of removal) to their customer's premises during the material period, all prior to 31.3.2008 In favour of assessee Issues:- Whether the service availed for outward transportation of final products should be treated as 'input service' for CENVAT credit.- Applicability of the Larger Bench decision and High Court ruling on the matter.Analysis:1. The appeals before the Appellate Tribunal involved the question of whether the service availed for outward transportation of final products should be considered as 'input service' for CENVAT credit under Rule 2(l) of the CENVAT Credit Rules, 2004. This issue had been settled in favor of the assessee by a Larger Bench decision of the Tribunal through Miscellaneous Order No.276-282/2009 dated 18.5.2009. The Larger Bench had ruled that such services are eligible for CENVAT credit. However, individual appeals were remanded back to the present Bench for final disposal after the Larger Bench decision. Additionally, the Hon'ble High Court, in a batch of appeals filed by the department, upheld the decision of the Larger Bench in the case of Commissioner vs. ABB Ltd.: 2011 (23) STR 97 (Kar.), specifically allowing CENVAT credit for outward transportation of final products up to 31.3.2008.2. One of the appeals considered by the Larger Bench, namely Appeal No.E/859/2006 (CCE, Hyderabad vs. The India Cement Ltd.), was addressed by the present Bench in light of the High Court's judgment in the ABB Ltd. case. The Tribunal disposed of this appeal through a final order dated 18.6.2012, aligning with the High Court's ruling on the matter.3. Considering the settled position post the High Court's decision, the Tribunal found that the ruling of the High Court applied equally to the facts of the cases under consideration. After hearing both sides, the Tribunal concluded that the assessees were indeed entitled to claim CENVAT credit on GTA services utilized for the outward transportation of their final products from their factories to customers' premises before 31.3.2008. Consequently, the appeals filed by the assessees were allowed, while those by the department were dismissed.
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