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2018 (4) TMI 850 - AT - Service TaxCENVAT credit - inward freight - GTA service - credit denied by relying in the decision in the case of SKF India Ltd. vs. CCE, Pune I 2015 (6) TMI 79 CESTAT MUMBAI - Held that - In as much as the effect of the said decisions have not been considered by Commissioner (Appeals), the matters remanded to Appellate Authority for reconsideration by taking into account the decisions referred - appeal allowed by way of remand.
Issues:
1. Admissibility of Cenvat credit on service tax paid on transportation of vehicles. 2. Utilization of input service credit for payment of service tax on output services. 3. Interpretation of Tribunal decisions regarding credit for transportation of vehicles. Analysis: Issue 1: The main issue in this case was the admissibility of Cenvat credit on service tax paid on the transportation of vehicles from the manufacturer's premises to the appellant's premises. The Revenue contended that the credit was not admissible as it related to trading activities. However, the appellants argued that they were entitled to the credit based on previous Tribunal decisions allowing such credits. Issue 2: The appellants were utilizing the input service credit availed under Goods Transport Agency Services for payment of service tax on the output services provided by them at their service station for servicing the motor vehicles. This raised the question of whether the credit could be legitimately utilized in this manner. Issue 3: The Tribunal referred to previous decisions such as CCE, Tirupathi vs. Shariff Motors and Badrika Motors (P) Ltd. vs. CCE & ST, Bhopal, where credits for transportation of vehicles were allowed. However, the Revenue pointed to a more recent decision in SKF India Ltd. vs. CCE, Pune, which might have implications for the current case. The Tribunal decided to remand the matter to the Appellate Authority for reconsideration in light of these conflicting decisions. In conclusion, the Tribunal allowed both appeals by way of remand, emphasizing the need for a thorough reconsideration by the Appellate Authority in light of the various Tribunal decisions cited by both parties. The decision highlighted the importance of considering the specific circumstances and relevant legal precedents in determining the admissibility of Cenvat credit in cases involving the transportation of vehicles.
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