Tribunal grants Cenvat credit for service tax on outward transportation, considering relevant Circulars and Supreme Court judgments.

The Tribunal allowed the appeal filed by the Revenue, granting the Appellants the Cenvat credit for service tax paid on outward transportation of goods. The Tribunal determined that the freight paid on outward transportation qualified as "Input Service" until the goods were handed over to the buyer, based on relevant Circulars and Supreme Court judgments. The Tribunal also considered the limitation aspect and lack of malafide intention on the part of the Appellants, ultimately setting aside the impugned order and providing consequential reliefs. The appeals were dismissed, with no costs awarded.

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Issues:
Denial of Cenvat Credit for service tax on outward transportation of goods from 2009-10 to 2013-14.

Detailed Analysis:
The Tax Appeals were filed by the Revenue against the order passed by the Customs, Excise and Service Tax Appellate Tribunal denying Cenvat Credit for service tax on outward transportation of goods. The substantial question of law proposed by the Revenue was whether the Tribunal was right in allowing the appeal of the respondent to avail Cenvat credit for the mentioned period. The controversy revolved around the denial of Cenvat Credit by the adjudicating authority, which was confirmed by the Commissioner, Central Excise, Kutch, disallowing Cenvat Credit and levying interest and penalty. The issue was whether the credit of GTA is available on input service up to the place of removal after 1st April 2008 as per Rule 2(l) of Cenvat Credit Rules, 2004.

The Tribunal, after hearing both sides, held that the Appellants were eligible for the Cenvat credit of service tax paid on outward freight. The Tribunal considered the Circular issued by the CBEC and various judgments, including those of the Supreme Court, to determine the "place of removal" and "point of sale" in the context of the case. The Tribunal found that until the goods were handed over to the buyer, the cost was borne by the Appellants, making the freight paid on outward transportation qualify as "Input Service." The Tribunal also addressed the issue of excise duty paid on freight being more than the Cenvat credit on outward GTA, deciding the matter on merit based on the Cenvat Credit Rules.

The Tribunal further discussed the relevance of certain Circulars and judgments in determining the eligibility of the Appellants for Cenvat credit. It was noted that the law on the issue had been settled by the Supreme Court, and beneficial Circulars could not be withdrawn retrospectively. The Tribunal also considered the limitation aspect, stating that the issue of outward GTA had been under litigation since the introduction of the Cenvat Scheme, and no malafide intention could be attributed to the Appellants. Consequently, the Tribunal allowed the appeal, setting aside the impugned order and granting consequential reliefs.

In conclusion, the Tribunal dismissed the appeals, stating that no question of law, much less any substantial question of law, arose out of the impugned order. The decision was based on the findings of facts given by the Tribunal, relying on the Board Circular and relevant Supreme Court judgments. No costs were awarded in the case.

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