2009 (8) TMI 19 - AT - Service Tax

Cenvat Credit on GTA Service - GTA service for which the assessees paid service tax was output service and accordingly CENVAT credit could be used for discharging GTA service availed by them. The period in dispute in the present case is January 2005 to September 2005 which is prior to the amendment by which the Explanation to Rule 2(p) of the CENVAT Credit Rules was deleted. Therefore during the relevant period the assessee was entitled to utilize CENVAT credit paying duty on final products are output service

Summary

The Appellate Tribunal CESTAT, Chennai ruled that utilizing CENVAT credit for paying service tax on goods transport agency service is permissible for manufacturers of sugar and molasses. The decision was based on previous Tribunal rulings and the relevant period was January 2005 to September 2005. The impugned order was set aside and the appeal was allowed.