2020 (4) TMI 353 - AT - Central Excise

Tribunal allows Cenvat credit on GTA services for petroleum transportation

M/s. Numaligarh Refinery Limited Versus Commissioner of Central Excise, Shillong

M/s. Numaligarh Refinery Limited Versus Commissioner of Central Excise, Shillong - TMI Issues:Denial of Cenvat credit on GTA Service for transportation of petroleum products from refinery to depot and customers' premises.Analysis:The appeal was against an order passed by the Commissioner of Central Excise regarding the denial of Cenvat credit on Service Tax paid for transportation services. The dispute revolved around whether transportation services for moving petroleum products from the refinery to the depot and then to customers' premises qualified as input services under Rule 2(l) of the Cenvat Credit Rules, 2004.The appellant did not contest a portion of the Service Tax demand but challenged the remaining amount, arguing that both the refinery and the depot should be considered as 'place of removal,' allowing them to claim Cenvat credit on the GTA services. The appellant cited judgments of the Hon'ble Supreme Court to support their position.The Revenue's Authorized Representative supported the findings of the impugned order, leading to a hearing where both sides presented their arguments, and the records were examined. The period of dispute was from December 2006 to March 2008, falling under the pre-amended definition of input service in Rule 2(l) of the Cenvat Credit Rules, 2004.The Tribunal analyzed the provisions of the amended Rule 2(l) and referred to a Supreme Court judgment to determine that transportation services for moving the final product from the place of removal were considered as input services eligible for Cenvat credit. Consequently, the Tribunal found no merit in the impugned order confirming the Cenvat demand, interest, and penal liabilities, and allowed the appeal in favor of the appellant.