The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad bench has held that cenvat credit is available in case of outward transportation for the services availed from the place of removal up to the customers place.
The assessee, Phillips Carbon Black Limited approached the Tribunal contending that they are entitled for cenvat credit in respect of outward GTA for period prior to 01.04.2008 and therefore, the order of the department shall be quashed.
Judicial Member, Mr. Ramesh Nair observed that prior to 01.04.2008, the services related to removal of the goods was “from the place of removal” which was replaced as amended with effect from 01.04.2008 as “up to the place of removal”.
“Therefore, the Cenvat Credit prima facie is available in case of outward transportation for the services availed from the place of removal up to the customers place. However, I also agree with Learned Authorized Representative that Board has prescribed certain conditions for allowing credit which need to be satisfied. Since the adjudicating authority has not verified the fact that, whether the said conditions of Board Circular have been complied with or not, the matter needs to be reconsidered,” the Tribunal said.
Quashing the impugned orders, the Tribunal held that “Therefore, the impugned order is liable to be set aside and Appeal deserves to be remanded to the Adjudicating Authority for passing a fresh order after verifying the documents to ascertain that whether the appellant has fulfilled the condition as prescribed in the Board’s Circular No. 97/8/2007-ST dated 23.08.2007.Needless to say that the Adjudicating Authority shall consider the judgments cited by both the sides. The appeal is allowed by way of remand to the Adjudicating Authority.”
Shri Anandoday Mishra & Ms. Chaitali Sadayat appeared for the assessee.
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