In a major relief to MRF Ltd, the Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit shall be allowed for the payment of service tax on GTA services availed for transportation of goods from the factory to the customer’s premises.
Earlier, the department had denied the benefit to the company. Before the Tribunal, the assessee contended that the very same issue has been held in favour of the appellants in their own case vide Final Order No.40934-40938/2019 dated 18.07.2019.
After hearing both the sides, Judicial Member Sulekha Beevi held that the issue stands covered by the decision of the Tribunal in the appellant’s own case.
“Further, in page 8 of the impugned orders, the Commissioner (Appeals) has noted that appellants have included the freight charges in the assessable value and discharged excise duty on the same. In such circumstances, the appellants would be eligible to avail credit of the service tax paid on such freight charges for outward transportation of goods upto the buyer’s premises,” the Tribunal added.
Deleting the order and granting relief to the company, the Tribunal held that “the said issue has been analyzed by the Division Bench of the Tribunal at Ahmedabad in the case of Ultratech Cement Ltd. Vs CCE – 2019 (2) TMI 1487. It is also submitted by the Ld. Counsel that said decision has been upheld by the High Court of Gujarat vide R/Tax Appeal Nos.691 of 2019, 698 of 2019 and 690 of 2019 all dated 23.01.2020. Following the above decisions, I am of the view that the demand cannot sustain. The impugned orders are set aside.”
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