CENVAT credit on GTA services cannot be denied where service tax payment is proved by reliable documentary evidence.

CENVAT credit on goods transport agency services should not be denied where payment of service tax on the input service is otherwise established through reliable documentary evidence, such as a supplier's certificate confirming tax deposit and supporting challan proof. Denial on the sole ground that an additional copy of the challan was not produced was not sustainable when the tax payment stood evidenced. On that basis, the credit claim was accepted and the corresponding demand and penalty were treated as unsustainable.

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Issues: Whether CENVAT credit on goods transport agency services could be denied when the service provider had paid service tax and issued supporting certificate and challan evidence.

Analysis: The appellant relied on a certificate issued by the supplier confirming deposit of service tax on the transportation charges for the relevant period, along with sample challan evidence. On those facts, the denial of credit on the sole ground that a copy of the challan was not produced was not sustainable, since the tax payment on the transportation service stood established.

Conclusion: The appellant was entitled to the CENVAT credit on goods transport agency services, and the corresponding demand and penalty were unsustainable.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Where payment of service tax on the relevant input service is evidenced by reliable documentary proof, CENVAT credit cannot be denied merely for want of a further copy of the tax-payment challan.

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