Cenvat credit on GTA service tax deposit is admissible when tax is already paid into the Treasury.

Cenvat credit on GTA services was treated as admissible where Service Tax had already been deposited into the Treasury, even though the credit was taken on the basis of a challan. The Tribunal rejected the objection that the challan was an inadmissible document, holding that substantive tax payment prevails and credit cannot be denied unless the depositor is otherwise disentitled. The availability of set-off against duty liability was therefore recognised, and the Revenue's challenge failed.

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Issues: Whether Cenvat credit could be denied merely because it was taken on the basis of a challan showing payment of Service Tax on GTA services, when the tax had already been deposited into the Treasury.

Analysis: The Tribunal held that once the tax has gone into the Treasury, credit cannot be refused unless the person making the deposit is otherwise disentitled. The objection that the challan was an inadmissible document was rejected in view of the substantive fact of tax payment and the availability of credit for set-off against duty liability.

Conclusion: Cenvat credit was held to be admissible, and the Revenue's appeal failed.

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