M/s. Unimech Industries Pvt. Ltd. Versus Commissioner of GST & Central Excise Coimbatore
Central Excise
2018 (8) TMI 1573 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 5-6-2018
Appeal No. E/42488/2017 – Final Order No. 41719/2018
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial)
Shri K. Subash Chandiran, Advocate for the Appellant
Shri R. Subramaniam, AC (AR) for 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 Apri
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e of Commissioner of Central Excise & Service Tax Vs. Ultra Tech Cement Ltd. – 2018 (9) GSTL 33 (SC). 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 very much clear that all the services which are used in or in relation to manufacture are eligible for credit. The inward transportation was used for bringing the inputs into the factory and therefore such activities being directly related to the act
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igible 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 appellant has also argued on the ground of limitation. He submitted that during the period of dispute, the decision laid down in the case of ABB Ltd. as well as Ultra Tech Cement Ltd. was in force and therefore the appellant had availed the credit on the bonafide belief that they are eligible for credit. Only after the decision of the Hon'ble Supreme Court in the Ultra Tech Cement Ltd. (supra), the same has been held to be not eligible. The argument of the ld. Counsel is not without substance. The issue was in litigation and being an interpretation
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