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TMI Blog2018 (8) TMI 1573X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Respondent ORDER Brief facts are that the appellants are manufacturers of 'Tractor parts' and are registered under the category of 'Goods Transport Agency' service. During the audit of their accounts, it was noticed that they have wrongly availed CENVAT credit of Rs. 3,38,108/- being the service tax paid on GTA service for the period April 2008 to April 2009. Show cause notice dated 19.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He submitted that the Hon'ble Supreme Court has held that prior to 1.4.2008, an assessee would be eligible for credit of GTA service upto the buyer's premises whereas after 1.4.2008, the same would not be eligible pursuant to the amendment. It was also argued by him that the department has raised the demand disallowing the credit on inward transportation also. The definition of input service is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08. Thus, on merits, I hold that the appellant would not be eligible for credit on outward transport upto buyers premises after 1.4.2008. 6. With regard to the allegation that the appellant is not eligible for credit on inward transportation, I am of the view that this being for procuring inputs into factory is eligible for credit as these have direct nexus to the manufacturing activity. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. The appellant is liable to pay duty for the two months period beyond the normal period. However, that being an interpretational issue, the penalty in respect of these months cannot sustain. 7. In the result, the impugned order is modified to the extent of setting aside the demand on the ground of limitation and the penalties in respect of the normal period. Appeal partly allowed with consequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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