Steel manufacturer wins appeal against tax reversal demand, setting aside department's unsustainable order.

The appellant, a steel manufacturer, was required by the department to reverse the Cenvat credit of service tax paid on GTA service for bringing inputs to the factory. Despite paying the amount equal to the Cenvat credit availed for inputs, the department demanded reversal. The Commissioner (Appeals) upheld this, but the judge referred to precedents in favor of the appellant. The judge found the department's order unsustainable, setting it aside and allowing the appeal in favor of the appellant.

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Issues:
- Whether the appellant is required to reverse the Cenvat credit of service tax paid on GTA service availed for bringing inputs to the factory.

Analysis:
The appellant, a manufacturer of steel M.S. Ingots, removed certain Cenvat credit availed inputs and paid an amount equal to the Cenvat credit actually availed as per Rule 3(5) of the Cenvat Credit Rules, 2004. However, the department issued a show cause notice to reverse the Cenvat credit of service tax paid on GTA service availed for bringing those inputs to the factory. The Jurisdictional Assistant Commissioner confirmed a Cenvat credit demand along with interest and penalty, which was upheld by the Commissioner (Appeals). The appellant appealed against this decision.

The appellant's counsel cited relevant judgments of the Tribunal and the Hon'ble Punjab & Haryana High Court, arguing that the issue had been decided in favor of the appellant in similar cases. The Departmental Representative defended the impugned order based on the Commissioner (Appeals) findings.

The judge, after considering submissions from both sides and perusing the records, noted that the appellant had already paid the amount equal to the Cenvat credit actually availed for the inputs in question. The key dispute was whether the appellant was also required to reverse the Cenvat credit of service tax paid on the GTA service used to bring those inputs to the factory. The judge referred to previous Tribunal judgments and the Hon'ble Punjab & Haryana High Court judgment that had already decided this issue in favor of the appellant. Consequently, the judge found the impugned order unsustainable and set it aside, allowing the appeal in favor of the appellant. The judgment was pronounced in open court by the judge.

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