2017 (4) TMI 691 - AT - Central Excise

Tribunal remands case for further examination on service tax credit eligibility for GTA services.

The Tribunal remands the case to the original authority for further examination, allowing the appellant to submit relevant documents supporting their ... CENVAT credit - GTA services for outward transportation of goods till destination - Held that: - service tax paid availing transportation service in such cases as per contractual obligation to deliver the goods at the destination shall be admissible to cenvat credit - appellants were not able to produce documents due to disturbed conditions in their factory either before the original authority or lower appellate authority, it is considered fair and proper to remand the matter to the original authority to address on this issue who shall dispose of the claim of the appellant after granting an opportunity of hearing to them - appeal allowed by way of remand. Issues:Eligibility of service tax credit for GTA services availed by the appellant for outward transportation of goods till destination.Analysis:The issue in dispute revolves around the eligibility of service tax credit concerning GTA services utilized by the appellant for the outward transportation of goods until the destination point. The appellant, represented by Shri M. Kannan, argues that the outward transportation was necessitated by the contract with the buyer, as sales were directly made from the factory. The Commissioner (Appeals) rejected the claim citing lack of evidence regarding the point of sale, as mandated by Board's Circular No.97/6/2007-S.T. The appellant was unable to produce relevant documents due to a factory lockout, acknowledged by the original authority. The appellant now asserts readiness to provide the necessary documents if given an opportunity.On the contrary, Shri S. Nagalingam (AC) supports the impugned order. After hearing both sides and reviewing the records, the Tribunal notes that similar issues have been addressed in previous cases. Referring to the case of CCE Chennai-II Vs Lucas TVS Ltd., the Tribunal emphasizes the importance of the Sale of Goods Act, 1930, in determining the transfer of property and the intention of the parties regarding the point of sale. The Tribunal underscores that service tax paid for transportation services to fulfill contractual obligations is admissible for Cenvat credit, preventing a cascading effect on taxes. Additionally, the Tribunal clarifies that service tax paid for export-related services, such as C&F and CHA services, also entitles the assessees to Cenvat credit.Based on the legal principles outlined and considering the appellant's inability to produce documents due to factory conditions, the Tribunal deems it appropriate to remand the matter to the original authority. The original authority is instructed to address the issue, granting the appellant an opportunity to present relevant documents, in line with the guidelines established in the Lucas TVS Ltd. case. The appeal is allowed for remand, ensuring a fair examination of the appellant's claim in light of the legal framework provided.In conclusion, the Tribunal's decision emphasizes adherence to legal provisions, particularly the Sale of Goods Act, 1930, in determining the eligibility of service tax credit for transportation services. The remand to the original authority aims to facilitate a comprehensive review of the appellant's claim, considering the circumstances that hindered document production initially.