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2019 (3) TMI 519 - HC - Central ExciseCENVAT Credit - input services - GTA Services - period after 01.4.2008 - Held that:- The Adjudicating Authority held that in view of clarification given by the Board, vide letter dated 02.2.2006, the contention of the assessee was accepted. However, the next three sentences overturned the case of the assessee. The Adjudicating Authority held that the service tax credit distributed by the Regional Distribution Centres and the Corporate Office as discussed supra have no nexus with the manufacturing activity of the assessee and that the credit availed by the assessee was not in order. The issue, which should have been decided by the Adjudicating Authority, is as to whether the point of sale is the RDC as contended by the assessee. In fact, the Tribunal partly allowed the assessee's appeals on input service credit availed in all the RDCs in respect of renting of premises, courier, telephone, security services, etc., under Rule 2(l) of the CCR irrespective of the amendment i.e. before and after 01.4.2008 and also set aside the penalty. However, in respect of GTA services, the Adjudicating Authority and the Tribunal disallowed the input credit availed by the assessee beyond the RDCs/Corporate Office from 01.4.2008 and held that they are not eligible for the purpose of Rule 2(l) of the CCR as it stood after 01.4.2008. To arrive at the correct conclusion, the Adjudicating Authority should have taken note of the decision of the Hon'ble Supreme Court in the case of CCE, Belgaum Vs. Vasavadatta Cements Ltd. [2018 (3) TMI 993 - SUPREME COURT]. The issue, which fell for consideration before the Hon'ble Supreme Court was as to what interpretation has to be given to input services, which is defined in Rule 2(l) of the CCR. The appeals before the Hon'ble Supreme Court all related to a period prior to 01.4.2008 and the said Rule stood amended with effect from 01.4.2008. The issue requires to be examined in depth on the factual matrix and the Adjudicating Authority shall take note of the decision of the Hon'ble Supreme Court in the case of Vasavadatta Cements Ltd. - Appeal allowed by way of remand.
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