M/S Garden Silk Mills Ltd vs Commissioner, Central Excise & Service ...

Customs Excise and Service Tax Appellate Tribunal16 April 2015

CitationAppeal No.ST/273/2011-DB; Application No.ST/MA(Extn)/15413/2014

Ratio decidendi

The rule this decision rests on

A manufacturer may utilise the CENVAT credit balance standing in its CENVAT account towards payment of service tax chargeable on goods transport by road services availed on inward freight, and on technical assistance services received from a foreign service provider, for the period in question. Where the issue is covered by a binding decision of the High Court upholding a Larger Bench decision of the Tribunal on an identical point, the Tribunal is bound to follow that decision in favour of the assessee, and an impugned order inconsistent with it cannot be sustained.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

In The Customs, Excise & Service Tax Appellate TribunalWest Zonal Bench At Ahmedabad

Appeal No.ST/273/2011-DB; Application No.ST/MA(Extn)/15413/2014 [Arising out of OIO No.53/Dem/2010, dt.30.12.2010, passed by Commissioner of Central Excise & Service Tax, Surat]

M/s Garden Silk Mills Ltd. Appellant

Commissioner, Central Excise & Service Tax, Surat-I Respondent

Represented by:

For Appellant: Shri Willingdon Christian, Advocate For Respondent: Shri Alok Srivastava, Authorised Representative

For approval and signature:

Honble Mr. P.K. Das, Member (Judicial) Honble Mr. H.K. Thakur, Member (Technical)

1. Whether Press Reporters may be allowed to see the No Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2. Whether it should be released under Rule 27 of the No CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3. Whether their Lordships wish to see the fair copy of Seen the order?

4. Whether order is to be circulated to the Departmental Yes authorities?

CORAM:

HONBLE MR. P.K. DAS, MEMBER (JUDICIAL) HONBLE MR. H.K. THAKUR, MEMBER (TECHNICAL)

Date of Hearing/Decision:16.04.2015

Order No. A/10332 / 2015, dt.16.04.2015

Per: P.K. Das

1. After hearing both the sides and on perusal of the records, we find that the issue involved in this case is whether a manufacture having CENVAT Credit balance in the CENVAT account and utilize the credit for payment of Service Tax on Goods Transport by Road on inward freight and Technical Assistance Service received from a foreign service provider during the period March 2005 to May 2006.

2. The issue is no more res-integra in view of the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Central Excise & Customs Vs Panchmahal Steel Ltd 2015 (37) STR 965 (Guj) which has upheld the decision of the Larger Bench of the Tribunal in the case of M/s Panchmahal Steel Ltd Vs Commissioner of Central Excise, Vadodara 2014 (34) STR 351 (Tri-LB), identical issue, in favour of the assessee.

3. In view of that, we find that the impugned order cannot be sustained. Accordingly, the impugned order is set aside. The appeal filed by the Appellant is allowed. The application filed by the Appellant for extension of stay order is dismissed as infructuous.

(Dictated & Pronounced in Court)

(H.K. Thakur) (P.K. Das) Member (Technical) Member (Judicial)

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