Manufacturer wins appeal for CENVAT credit on transportation service pre-2008

The appellant, a manufacturer of excisable goods, successfully appealed against the denial of CENVAT credit on outward transportation service availed before 01/04/2008. The Tribunal held that there was no restriction on claiming CENVAT credit for 'outward transportation service' at the time of service receipt. Therefore, the appellant rightfully availed the credit in November 2009. The impugned order was set aside, and the appeal was allowed with consequential relief.

---

---

Issues:
Appeal against denial of CENVAT credit on 'Goods Transport Agency Service' availed prior to 01/04/2008.

Analysis:
The appellant, a manufacturer of excisable goods, appealed against the denial of CENVAT credit on outward transportation service availed before 01/04/2008. The Revenue argued that post 1st April 2008, the definition of 'input service' changed, rendering the appellant ineligible for CENVAT credit on outward transportation service. A show cause notice was issued, and the credit was denied. However, the appellant contended that there was no bar on availing CENVAT credit when the service was received. The Tribunal noted that at the time of service receipt, there was no restriction on claiming CENVAT credit for 'outward transportation service'. Therefore, it was held that the appellant rightfully availed the credit in November 2009. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.

---