GTA Service - it is immaterial who has paid the Service Tax - even if Transporter has paid ST, appellant is eligible to take CENVAT credit
THE appellants are manufacturers of excisable goods and procured inputs. On these inputs, the transporter has paid service tax and on the basis of the invoice issued by the transporter, the appellant availed input service credit of Goods Transport Agency Service.
Revenue is of the view that since in case of GTA the appellants are required to pay service tax and as they have not paid the service tax, therefore, they are not entitled for input service credit.
The adjudicating authority confirmed the demand and in appeal the Commissioner (Appeals) directed the appellant to make pre-deposit which the appellant failed to. And so, the appeal was dismissed for non-compliance.
The Tribunal had remanded the matter to the Commissioner (Appeals) and directed him to decide the issue on merits without insisting on pre-deposit.
In remand proceedings, the Commissioner (A) once again confirmed the Adjudication order.
So, the appellant is once again before the CESTAT.
They requested the Bench to decide the matter on merits in the light of the decision of Dhampur Sugar Mills Ltd. [].
The CESTAT held -
"6. On perusal of the records, I find that it is not disputed that on Goods Transport Agency Service which was availed by the appellant, service tax has been paid, and appellant has taken the credit of the service tax paid. It is immaterial who has paid the service tax. Ld. Commissioner (Appeals) has failed to appreciate the fact that the service has suffered service tax and any payment towards duty or service is entitled for input service credit/input credit. Therefore, the finding of the lower authorities that in the case of Goods Transport Agency Service, service tax is required to be paid by the service recipient is not tenable. Accordingly, impugned order deserves no merit, hence set aside. Appeal is allowed."