2018 (1) TMI 469 - AT - Central Excise

Tribunal remands service tax credit dispute, orders reevaluation.

The Tribunal allowed the appeals by way of remand, setting aside the orders dropping the demand of reversal of cenvat credit of service tax, interest, and ... CENVAT credit - input service - GTA Service - place of removal - Held that: - the impugned order are set aside and the matters are remanded to the adjudicating authority to decide afresh - appeal allowed by way of remand. Issues: Appeal against dropping demand of reversal of cenvat credit of service tax, interest, and penalty imposition.Analysis:1. The Revenue filed appeals against the Commissioner (Appeals) order dropping the demand of reversal of cenvat credit of service tax, interest, and penalty against the company. The Revenue argued that the company availed cenvat credit for courier services beyond the place of removal, which they claimed was inadmissible. They referred to a dispute regarding GTA services, pending before the Hon'ble Apex Court, and requested a remand for a decision post the Apex Court's judgment in the ABB Ltd. case.2. The respondents' counsel resisted, contending that the issue before the Hon'ble Apex Court pertained to GTA services, not courier services. They cited precedents to support the availability of input service credit for courier services. The Tribunal examined the submissions and noted the distinction between the issues related to GTA services and courier services in the current case.3. The Tribunal observed that the dispute in question concerned the admissibility of credit for services used in dispatching goods from the factory gate to the buyer's premises. They emphasized that both GTA services and courier services were integral to the input service credit under the Cenvat Credit Rules. The Tribunal distinguished previous cases related to courier services and directed a remand to the adjudicating authority for further consideration post the Apex Court's decision in the ABB Ltd. case.4. Based on the analysis, the Tribunal allowed the appeals by way of remand, setting aside the impugned orders and remanding the matters for the adjudicating authority to address and decide on the issues after the Hon'ble Apex Court's ruling in the ABB Ltd. case. The cross objections were also disposed of during the judgment pronouncement on 05/12/2017.