The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication to the adjudicating authority on the denial of CENVAT credit of service tax on transportation charges on gas without verifying Freight On Road (FOR) destination.
Gujarat Gas Ltd, the appellant assessee appealed against the order passed by the Commissioner (Appeals) for denying the CENVAT credit of Service Tax paid on the charges of Freight for transportation of Gas from their mother station to the daughter station from where the sale takes place.
Amber Kumrawat, the counsel for the assessee contended that the assessee’s own case for the earlier period this Tribunal had remanded the matter to the Adjudicating Authority to re-examine the matter in the light of the Board Circular No. F/116/23/2018-CX-3.
Ashok Thanvi, the counsel for the department relied on the decisions made by the lower authorities and contended that the denial of the CENVAT credit of service tax was as per the law and liable to be sustained.
The Bench observed that the assessee is claiming that the goods are supplied on a FOR destination basis. Thus, the adjudicating authority did not verify the facts, and verification of facts and redetermination of dispute in terms of Circular was essential for the present case.
The two-member bench comprising Ramesh Nair (Judicial) and Raju (Technical) remanded the matter to the Adjudicating Authority to pass a fresh order.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
