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of <h1>Tribunal Grants Waiver & Stays Demand on GTA Service Credit Dispute, Refers Issue to Larger Bench</h1> The Tribunal granted waiver of predeposit and stayed recovery of demand of credit for appellants in a case involving credit availed on GTA service for ... Waiver of pre-deposit and stay of recovery of demand of credit, penalties and applicable interest - demands were raised for the amounts of credit availed on GTA service incurred for outward transport of final product from the place of removal – Considering the reference of the dispute to a LB by the Bangalore Bench the DB Chennai has granted stay in a number of similar cases - In view of the uncertainty of the liability of the appellants confirmed in the impugned orders, stay is granted Issues:1. Waiver of predeposit and stay of recovery of demand of credit2. Applicability of credit availed on GTA service for outward transport of final product3. Consistency of Commissioner (Appeals) view with previous judgments4. Reference of dispute to Larger Bench by Bangalore Bench5. Entitlement of credit of tax paid on GTA service towards freight from the place of removalAnalysis:1. The appellants, M/s. Athiappa Chemicals Ltd. and M/s. Tagros Chemicals India Ltd., sought waiver of predeposit and stay of recovery of demand of credit totaling Rs. 1,18,370/- and Rs. 31,438/- respectively, along with penalties and applicable interest. The demands were related to credit availed on GTA service for outward transport of final products. The Tribunal considered the uncertainty of the liability of the appellants and decided to waive the pre-deposit of dues as per the impugned order and stayed the recovery until the final disposal of the appeals.2. The case involved a dispute regarding the applicability of credit availed on GTA service for outward transport of the final product from the place of removal. Both sides pointed out that the view taken by the Commissioner (Appeals) in the impugned order was consistent with the ratio of a previous judgment. The Bangalore Bench of the Tribunal had referred a similar dispute for a final decision by the Larger Bench, indicating the complexity and significance of the issue.3. The judgment referred to previous cases such as India Japan Lighting Pvt. Ltd. v. CCE, Chennai and Gujarat Ambuja Ltd. v. CCE to highlight the varying interpretations regarding the entitlement of credit of tax paid on GTA service towards freight from the place of removal. The reference to these judgments indicated the importance of establishing consistency and clarity in the interpretation of the law.4. The Bangalore Bench's decision to refer the dispute to a Larger Bench demonstrated the need for a comprehensive and authoritative resolution of the issue. The Tribunal acknowledged the reference made by the Bangalore Bench and considered similar cases where waiver of pre-deposit and stay of recovery were granted due to the uncertainty surrounding the liability of the appellants.5. The judgment highlighted the conflicting decisions in different benches regarding the entitlement of credit on GTA service. The reference to cases like India Cements Ltd. v. CCE, Tirupati and Gujarat Ambuja Ltd. v. CCE underscored the need for a uniform interpretation of the law to avoid discrepancies and ensure fairness in tax liability determination.
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