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2013 (2) TMI 111 - AT - Central ExciseCENVAT Credit on GTA (Outward Freight) Service - charge of excess credit - Held that - Commissioner (Appeals) has allowed the CENVAT Credit on the GTA (Outward Freight) Service following the decision of ABB Ltd. vs. CCE & ST, LTU, Bangalore 2011 (3) TMI 248 - KARNATAKA HIGH COURT . This interpretation is valid till 1-4-2008 substantial questions of law raised are answered in favour of the assesses.
Issues:
- Admissibility of CENVAT Credit on GTA (Outward Freight) Service - Imposition of penalty for irregular Credit availed Analysis: Admissibility of CENVAT Credit on GTA (Outward Freight) Service: The Appellant had availed CENVAT Credit on GTA (Outward Freight) Service for the period 2004-05 and 2005-06, along with an excess Credit during the same period. The Adjudicating Authority confirmed the irregular Credit availed and imposed penalties under relevant sections of the Central Excise Rules. Upon appeal, the learned Commissioner (Appeals) allowed the appeal filed by the Respondent, disagreeing with the Revenue's challenge on the admissibility of CENVAT Credit on GTA (Outward Freight) Service. The Commissioner's decision was based on the precedent set by the Hon'ble Karnataka High Court in the case of ABB Ltd. vs. CCE & ST, LTU, Bangalore. The High Court's judgment supported the admissibility of such credit, and the Commissioner's decision was in line with this interpretation. Consequently, the Tribunal dismissed the Revenue's appeal, as the period of dispute fell before the specified date of 1-4-2008, as per the High Court's ruling. Imposition of penalty for irregular Credit availed: The Adjudicating Authority had imposed penalties on the Appellant for the irregular Credit availed on GTA (Outward Freight) Service and the excess Credit during the specified period. However, the learned Commissioner (Appeals) upheld the appeal filed by the Respondent, rejecting the Revenue's challenge on the penalty amount imposed. The Tribunal, considering the period of dispute and the legal validity of the Commissioner's decision based on the High Court's judgment, dismissed the Revenue's appeal, thereby affirming the decision regarding the penalty imposed. In conclusion, the Tribunal upheld the Commissioner's decision regarding the admissibility of CENVAT Credit on GTA (Outward Freight) Service and the penalty imposed, based on the legal interpretations provided by the Hon'ble Karnataka High Court's judgment.
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