Assessee is entitled to take credit of service tax paid on GTA service under reverse charge before its taxable date

Sarda Energy & Minerals Ltd. vs. CCE, Raipur-I 2014 (35) STR 946 (Tri-Delhl)

FACTS:

Appellant deposited service tax as a receiver of GTA service in December 2004. The liability to pay service tax as a receiver of service arose from January, 2005 onwards. Appellant after payment of service tax took CENVAT Credit. The Department denied the credit on

the ground that the service was not taxable in the month of December, 2004

HELD:

The Tribunal observed that credit is available on the basis of payment of service tax and not on the basis of whether or not service tax is payable. Though Appellant was not liable yet paid service tax, was entitled to take credit of the same as per the CENVAT Credit Rules