By TIOL News Service

MUMBAI, OCT 11, 2016: THE issue is whether during the period October 2005 to June 2010, the appellant having paid the service tax on outward transportation of one of the exempted goods "press mud", is eligible to avail the service tax credit and use the same for discharging central excise duty on service tax liability.

It is the case of the Revenue that the "press mud" being exempted, any services rendered in respect of such goods, service tax credit cannot be availed.

The Bench observed-

"…I find that the Revenue's arguments are misdirected in as much, in the case of Shree Chh. Shahu SSK Ltd., in appeal E/1470/09, by an order No. A/63/15 dated 28.10.2014 - 2015-TIOL-186-CESTAT-MUM, the Tribunal was considering the eligibility to avail cenvat credit of service tax paid on manpower recruitment services which are used for handling, loading and unloading of press mud, compost and boiler ash which were attracting nil rate of duty. After considering the submissions made before the Tribunal in that case, it was held that such credit is eligible to be availed as cenvat credit. Since the view has been taken by the Tribunal in respect of the very same exempted goods and the services rendered in respect of such exempted goods, I hold that the impugned order denying the service tax credit to the appellant is incorrect and accordingly, I set aside the impugned order."

The impugned order was set aside and the appeal was allowed.

(See 2016-TIOL-2662-CESTAT-MUM)