Cenvat credit on inward transportation services upheld where binding precedent supported admissibility and revenue challenge failed.

Cenvat credit on service tax paid for inward transportation of goods was treated as admissible because the issue was already covered by binding Division Bench precedent in Andhra Pradesh Paper Mills Ltd., which had been followed in later coordinate Bench decisions. The Commissioner (Appeals) was found justified in relying on that precedent while allowing the claim, and no infirmity was identified in that approach. The revenue's challenge therefore failed, and the credit on inward transport service tax was upheld.

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Issues: Whether Cenvat credit of service tax paid on inward transportation of goods was admissible to the respondent.

Analysis: The issue was held to be covered by the Division Bench decision in Andhra Pradesh Paper Mills Ltd., which had been followed in several subsequent decisions of the same Bench and other coordinate Benches. The Commissioner (Appeals) had relied on that binding precedent while allowing the respondent's claim, and no infirmity was found in that approach.

Conclusion: Cenvat credit on the service tax paid for inward transport of goods was held admissible, and the revenue's appeal failed.

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