CENVAT credit on GTA services before 01.04.2008 was held admissible under binding precedent and circular guidance.

CENVAT credit on goods transport agency services used for inward and outward transportation was held admissible for the period before 01.04.2008. The Tribunal followed binding precedent, including the view that the benefit of Circular No. 97/8/2007-ST dated 23.08.2007 continued until that date, and applied the Supreme Court's ruling that such credit was available for the pre-01.04.2008 period. Accordingly, the credit claimed for the relevant period was allowed and the impugned order was modified.

---

---

Issues: Whether CENVAT credit on GTA service was admissible for the period prior to 01.04.2008.

Analysis: The dispute concerned credit taken on service tax paid for goods transport agency services used for inward and outward transportation. The Tribunal noted that the issue stood settled by judicial precedent, including the view that the benefit of Circular No. 97/8/2007-ST dated 23.08.2007 remained available till 01.04.2008. Following the Supreme Court's ruling that credit was available for the period prior to 01.04.2008, the credit claimed by the appellant for the relevant pre-01.04.2008 period was held to be admissible.

Conclusion: CENVAT credit on GTA service for the period prior to 01.04.2008 was allowed, and the impugned order was modified accordingly.

Ratio Decidendi: Where binding precedent holds that the benefit of the departmental circular continued till 01.04.2008, credit on GTA services taken for the period before that date is admissible.

---