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2014 (10) TMI 297 - HC - Service TaxCENVAT Credit - input service - Goods Transport Agency Service - is the assessee entitled to claim Cenvat credit of the service tax paid on the GTA-service even though it was not integral part of the price of goods - Held that:- Fundamental principle of cenvat credit is to avoid double taxation i.e. cenvat credit may be taken only of those inputs, whose price was added in the price of the goods or was included towards the price of the goods and not otherwise. It is also clear from the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (the Valuation Rules). Assessee has not treated the GTA-services of transporting goods to the destination as a part of the input service. In case it had so treated then it should have added this value in the price of the goods or in the valuation for calculating duty. Assessee has not included the amount paid for the GTA-service in the price of the goods. It has not chosen it to be a part of the price and as such, the Assessee was not entitled to claim Cenvat credit for the same. There is no illegality in the order of the Tribunal. This is also clear from the Circular. an assessee is only entitled to claim cenvat credit on service tax paid for the Goods Transportation Agency service provided amount paid was integral part of the price of the goods - the amount paid for the GTA service was not integral part of the price of the goods - Assessee was not entitled to claim cenvat credit of the service tax paid - Decided against assessee.
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