BESCO Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
In BESCO Ltd. Vs Commissioner of CGST & Central Excise, the appeal was filed against an order denying CENVAT credit on Goods Transport Agency (GTA) services.
The appellant is engaged in manufacturing railway parts and wagons. During its operations, it procured materials from M/s Tata Sponge Iron Limited. In such transactions, the supplier paid service tax on transportation charges up to the appellant’s premises and issued invoices accordingly. In certain instances, the appellant itself discharged service tax liability under the reverse charge mechanism and availed CENVAT credit.
The Revenue disputed the credit on the ground that the appellant failed to produce copies of challans evidencing payment of service tax by M/s Tata Sponge Iron Limited for GTA services. Based on this, a show-cause notice was issued, culminating in an order denying the credit, along with imposition of interest and penalty.
The appellant contended that M/s Tata Sponge Iron Limited had paid service tax on transportation and issued corresponding invoices. Additionally, a certificate was provided by the supplier confirming payment of service tax on such invoices. Therefore, the appellant argued that it was entitled to avail CENVAT credit.
The Tribunal examined the submissions and noted that the supplier had issued a certificate confirming payment of service tax for the period June 2006 to January 2011. A sample challan evidencing such payment was also placed on record.
