CHERAN SPINNERS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants herein incurred freight on transportation of inputs to its factory and also for transportation of the finished from the place of removal. They also paid service tax as recipients of the GTA service. On payment of service tax towards GTA service, the appellants availed equal amount as credit of service tax incurred on input service. The original authority adjudicated the allegation that the appellants had availed service tax credit of service tax paid on input service under the category of GTA service without proper documents prescribed in the rules. The original authority demanded an amount of Rs. 4,71,487/ - along with applicable interest and imposed equal amount of penalty on the appellants under Rule 15 of the Cenvat Credit Rules (CCR). The period of dispute is from 1 -1 -2005 to 31 -12 -2006.

(2.) AFTER perusing the records of the case and hearing both sides, I find that the impugned demand is towards, prima facie, the credit admissible to the appellants and availed by it. The denial of the credit taken, interest and penalty are on account of the appellants availing the credit without proper prescribed documents. In the instant case, the appellants paid service tax as recipients of services. There is no dispute or doubt as regards the details of the service tax paid. Other requisite particulars are available in the respective transport document relating to each amount of credit. In the circumstances, prayer for waiver of the adjudged dues is allowed and the recovery thereof stayed pending decision in the appeal.