Appellant granted credit for service tax on depot transportation; remand on garden maintenance credit

The Tribunal allowed the appellant's appeal for credit on service tax paid for transportation of goods between depots, citing the place of removal as the depot from which goods are sold. However, the decision to remand the issue of credit for maintenance of garden service was upheld due to insufficient information provided by the appellant, with the Tribunal requesting further clarification on the nature of services used for garden maintenance.

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Issues: Denial of credit on service tax paid for transportation between depots and maintenance of garden service.

Transportation of Goods between Depots:
The appellant, M/s.BASF India Ltd., faced a notice seeking to deny credit on certain services, including service tax paid on the freight for moving goods between their depots. The lower authorities allowed credit on most services but denied it for transportation between depots and maintenance of garden service. The appellant argued that credit for transportation between depots should be allowed as the place of removal is the depot from which goods are sold, citing a Tribunal decision affirmed by the Supreme Court. The Tribunal agreed, allowing the appeal for credit on transportation services.

Maintenance of Garden Service:
Regarding the credit for the maintenance of garden service, the appellant claimed it should be admissible as it was necessary for pollution control, but could not provide details on the nature of services used. The Tribunal noted the lack of clarity on the services and upheld the decision to remand the matter for further information, as requested by the Commissioner (Appeals). The appeal was partly allowed, upholding the remand for clarification on the nature of services used for garden maintenance.

In conclusion, the Tribunal allowed the credit for service tax paid on transportation of goods between depots based on the place of removal being the depot from which goods are finally sold. However, the decision to remand the issue of credit for maintenance of garden service for further clarification was upheld due to the lack of information provided by the appellant.

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