Arun Enterprises v. CCE

CENVAT CREDIT RULES, 2004

--Cenvat credit--Service tax wrongly paid under the category of 'Business auxiliary serviceIncome belonged to transportation activities--Denial of--In absence of any evidence of the revenue to prove that the income was generated on account of services under the category of 'Business auxiliary service. Cenvat credit was allowable.--Assessee availed of Cenvat credit on account of 'other income' shown in records as the same belonged to the transportation activities on the ground that the Goods Transport Agency services were availed of for inward as well as outward transportation. Revenue denied the credit holding that service tax on the same was paid under the category of 'Business Auxiliary Service', and not in respect of 'Transport of Goods by Road Services', therefore, the assessee was not entitled to avail the suo-motu credit. Held: In absence of any evidence to substantiate stand of the revenue that the said 'other income' was on account of services proved under the category of 'Business Auxiliary' Service, the assessee's stand of the 'other income' having been arisen on account of the Transportation Activities had to be accepted, therefore, the assessee would be entitled to Cenvat credit of the same.