Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (11) TMI 49 - CESTAT MUMBAI

2015 (11) TMI 49 - CESTAT MUMBAI - TMI - CENVAT Credit - GTA Service - inward transportation of the vehicle from M/s. Maruti Suzuki India Ltd - Held That:- Appellant is entitle for credit in respect of GTA as input service thus demand of ₹ 11,68,494/- is set aside. - Decision made in case of Commissioner v. Shariff Motors [2009 (3) TMI 155 - CESTAT, Bangalore] followed.

Credit of ₹ 2,08,665/- availed on building material is not admissible - Penalty of equal amount imposed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Appeals), rejected the appeal filed by the appellant. 2. The fact of the case is that the appellant are providing taxable service of Authorized Service Centre Service (Serving of motor Vehicles). During the period from April, 2007 to March, 2011, they had availed and utilized Cenvat credit of ₹ 11,68,494/-in respect of service tax paid on Goods Transport Agency (GTA) service where as freight paid on inward transportation of the vehicle from M/s. Maruti Suzuki India Ltd.. The appellant al .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and under Rule 15(a) of Cenvat Credit Rules, 2004. The show cause notice adjudicated vide order dated 4/4/2013 wherein adjudicating authority passed following order: 1. I disallow & recover the CENVAT Credit of ₹ 11,68,494/- (Rupees Eleven Lakhs Sixty Eight Thousands Four Hundreds Ninety Four Only) availed in respect of service tax (paid by MSIL) on inward transportation of new vehicles under the Rule 14 of CENVAT Credit Rules, 2004 read with Section 73 of Finance Act, 1994. 2. I confi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

002/- on confirmed & paid amount at S.No.(3) above at appropriate rate under section 75 of Finance Act, 1994. 5. I impose penalty of ₹ 11,68,494/- and ₹ 2,08,665/- on M/s. Kankariya Automobiles (P) Ltd., Nagar Manmad Road, Savedi, Ahmednagar under Rule 15(3) of CENVAT Credit Rules, 2004 read with Section 78 of Finance Act, 1994 for availing and utilizing inadmissible input service credit in respect of GTA service and inadmissible inputs viz. construction materials with intent to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es of authorized service centre, therefore it is not classified as input service (b) Service tax was paid by M/s. Maruti Suzuki therefore appellant is not entitle Cenvat credit of service tax the same was neither paid by them nor they are registered as GTA service provider. Being aggrieved by the impugned order the appellant is before me. 3. Shri Nimesh Mehta, Ld. Counsel for the appellant submits that services of GTA on which credit was availed is inward transportation therefore it is input ser .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

As regard contention of the Revenue that credit is not admissible on service tax paid by the M/s. Maruti Suzuki and not by the appellant, though the service tax paid by M/s. Maruti Suzuki to the government but in respect of said service tax and service charges i.e GTA, issued invoices wherein Service tax paid by them is clearly mentioned. It is his submission that as per Cenvat credit rules, invoice is valid documents for availing Cenvat credit in respect of service tax paid by service tax provi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as been upheld by the Hon ble Andra Pradesh High Court as reported in [2015(38) S.T.R.J53 (A.P.)]. He also relied upon the judgment of this Tribunal in case of Badrika Motors (P) Ltd. Vs. Commissioner of C. Ex. & S.T. Bhopal [2014(S.T.R.) 349 (Tri. Del)]. As regard the service tax of ₹ 2,08,665/-, it is his submission that appellant is not contesting service tax liability in respect of building material and accordingly they have paid service tax alongwith interest before the show cause .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pect of sale of the car for which this GTA service was availed. As regard the authorized station service the GTA service is nowhere related to the authorized station service for the reason that from the authorized station service the appellant is providing service of repair and maintenance of already sold cars and no service is provided in respect of the new cars which sold directly in the market, therefore there is no nexus of GTA service with their output services i.e. authorized station servi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ention of the Revenue is that GTA is in respect of purchase of car which is sold as such and authorized station service has no relation with this transportation service, therefore the GTA in respect of present service is not input service for providing out service i.e. authorized station service. The identical issue has been dealt by this Tribunal in case of Shariff Motors (supra) in which it was held as under: 6. We have gone through the records of the case very carefully. The Respondents are p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to cover the input service availed by the Respondents and also the output service rendered by them. We do not find any merit in the appeal of the Revenue. The Respondents are rightly entitled for the credit. Hence we reject the Revenues appeal and uphold the impugned order. This case has been upheld by the Honble Andra Pradesh Court wherein Hon ble Court has passed following order: Cenvat credit when Service Tax paid as input service on GTA and utilized as output service for payment of Service .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

passed the following order : This appeal is preferred against the judgment and order of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench at Bangalore, dated 12-3-2009 and sought to be admitted on the following suggested question of law : Whether CESTAT is correct in holding that the GTA service utilized by the assessee as recipient, is input service for providing the output service i.e., authorized service station ? The aforesaid question amply suggests that there is no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ation and we cannot substitute by another one. Thus, we do not find any element of law involved for admission of this appeal. Accordingly, the appeal is dismissed. No order as to costs The Appellate Tribunal in its impugned order had held that assessee paid Service Tax on Goods Transport Agency service for transportation of motor cycles from factory to showroom as input service and utilized the same as output service for payment of Service Tax under Authorized Service Station Service. They were .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version