Fact of case: M/s. Shree Cement Ltd. (“the Assessee”) was engaged in manufacture of clinker and cement. Assessee availed CENVAT credit of service tax paid on railway freights on the basis the photocopies of railway receipt and a certificate of payment of service tax issued by railway authorities. Revenue is of the opinion that the documents, basis of which assessee has availed CENVAT credit is statement of the freight for transportation of various inputs and it is not a valid duty paying document as provided under Rule 9 of CENVAT Credit Rules, 2004 (CCR).
Held: The Hon’ble CESTAT allows CENVAT credit of services tax paid on railway freight. It referred to necessary amendment made under Rule 9 since August 27, 2014 wherein under Rule 9 (1) (fa) following provision has been inserted “(fa) a Service Tax Certificate for Transportation of goods by Rail (hereinafter referred to as STTG Certificate) issued by the Indian Railways, alongwith the photocopies of the railway receipts mentioned in the STGG certificate”. CESTAT thus stated that the legislative also has recognised the validity of the certificates issued by the Railway Authorities certifying the payment of service tax by the appellants. Thus, CESTAT found no contravention of Rule 9 of CCR and allowed the above mentioned CENVAT CREDIT.
Citation: [ TS-619-CESTAT-2018-EXC ]