2015 (8) TMI 1133 - AT - Service Tax

Appellate Tribunal allows manufacturer to use CENVAT Credit for Service Tax.

The Appellate Tribunal CESTAT Ahmedabad ruled in favor of the appellant, allowing the appeal and setting aside the impugned order. The issue was whether a ... CENVAT credit utilisation for payment of Service Tax - Service Tax on Goods Transport by Road (inward freight) - Service Tax on Technical Assistance from a foreign service provider - precedential effect of High Court decision upholding Tribunal Larger BenchCENVAT credit utilisation for payment of Service Tax - Service Tax on Goods Transport by Road (inward freight) - Service Tax on Technical Assistance from a foreign service provider - precedential effect of High Court decision upholding Tribunal Larger Bench - A manufacturer with a balance in the CENVAT account could utilize that credit for payment of Service Tax on inward goods-transport (freight) and on technical assistance from a foreign service provider for the period March 2005 to May 2006. - HELD THAT: - The Tribunal held that the question was no longer res integra in light of the Gujarat High Court's decision upholding the Larger Bench of the Tribunal in an identical matter in favour of the assessee. Relying on that precedent, the Tribunal concluded that the impugned order denying utilization of CENVAT credit for payment of Service Tax on the specified inward freight and foreign technical assistance could not be sustained. Consequently, the impugned order was set aside and the appeal allowed. No separate factual re-examination or remand was directed.Impugned order set aside; appeal allowed and the appellant entitled to utilize CENVAT credit for the specified Service Tax liabilities for March 2005 to May 2006.Final Conclusion: The appeal was allowed: the impugned order denying utilization of CENVAT credit for Service Tax on inward goods transport and on technical assistance from a foreign provider for March 2005 to May 2006 was set aside, the decision being guided by the Gujarat High Court's affirmation of the Tribunal Larger Bench in favour of the assessee. The Appellate Tribunal CESTAT Ahmedabad ruled in favor of the appellant, allowing the appeal and setting aside the impugned order. The issue was whether a manufacturer with CENVAT Credit balance can use the credit for paying Service Tax on certain services. The decision was based on a previous ruling by the Hon'ble Gujarat High Court. The application for extension of stay order was dismissed as infructuous.