Cenvat credit set-off for Goods Transport Agency service tax upheld for service recipient without output service

Cenvat credit was held usable by a service recipient to discharge service tax on Goods Transport Agency services even though the recipient did not itself provide an output service. The Tribunal followed earlier decisions recognising such utilisation and, no contrary authority having been shown, applied the settled view in favour of credit set-off. The objection to utilisation of Cenvat credit was therefore upheld and the appeal was rejected.

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Issues: Whether Cenvat credit could be utilized by the service recipient for payment of service tax on Goods Transport Agency services when the recipient did not itself provide an output service.

Analysis: The Tribunal followed earlier decisions holding that Cenvat credit was available for discharge of service tax liability on goods transport services by the service recipient. In the absence of any contrary authority brought to notice, the settled view in favour of such utilization was applied.

Conclusion: The objection to utilization of Cenvat credit was upheld and the appeal was rejected.

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