2008 (9) TMI 157 - AT - Service Tax

Input services - Cenvat credit of transportation charges paid for return of empty cylinders appellant a Government undertaking submit that without the use of cylinders the Titanium Dioxide and the collected gases cannot be transported. It is submitted that the freight charges have to be treated as input service and they are eligible for taking the credit - Prima facie appellant have a strong case in their favour as gases cannot be transported without the use of cylinders stay granted

Summary

The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellant, a government undertaking from Kerala, allowing them to avail Cenvat credit on transportation charges for returning empty cylinders used in transporting Titanium Dioxide. The Tribunal considered the freight charges as an input service necessary for transporting gases in cylinders. The appellant was granted a waiver of pre-deposit and stay of recovery. The matter was scheduled to be heard before a Single Member Bench on 8-10-2008.