2015 (10) TMI 2594 - AT - Central Excise

CENVAT credit - outward transportation of the goods from the appellant s factory to the buyer - denial on the ground that the place of removal in the appellant s case is the factory gate - Held that - dispute relates to the factual position and requires verification and examination of documents, I deem it fit to set aside the impugned order and remand the matter to the original adjudicating authority for fresh decision - matter on remand - appeal disposed off.

Summary

Issues Involved:
Benefit of CENVAT credit on service tax for outward transportation denied.

Analysis:

The judgment dealt with the denial of the benefit of CENVAT credit on service tax paid for the outward transportation of goods from the appellant's factory to the buyer. The lower authorities based their decision on the amendment in the definition of input services, specifically the change from "clearance of final product from the place of removal" to "clearance of final product up to the place of removal." They concluded that since the place of removal in the appellant's case was the factory gate, they were not entitled to the credit. Additionally, the authorities found that the appellant did not meet the conditions outlined in Board's Circular No.97/08/2007-ST regarding credit availment for sales on FOR basis.

The advocate for the appellant argued that their sales were indeed on FOR basis, supported by evidence from purchase orders and customer agreements. He also cited precedents from the Tribunal in cases involving similar issues, such as Ultratech Cement Ltd. and M.P. Biscuits Pvt. Ltd. The advocate's contention was that all three conditions specified in the circular were fulfilled in their case.

Given the factual nature of the dispute and the need for document verification, the presiding member decided to set aside the impugned order and remand the matter to the original adjudicating authority for a fresh decision. The appellant was instructed to provide all relevant documents, and the Tribunal's decisions in the referenced cases were to be considered by the adjudicating authority. Ultimately, both appeals were allowed by way of remand, emphasizing the importance of a thorough review of the facts and applicable legal principles in determining the entitlement to CENVAT credit on service tax for outward transportation.