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2013 (10) TMI 1157 - AT - Service TaxCENVAT Credit Goods Transport Service - Whether the appellants are eligible for CENVAT credit of service tax amount paid on transportation of goods upto the customer premises during the period June 2005 to March 2008 Held that - Following COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, BANGALORE Versus M/s ABB LTD. and others 2011 (3) TMI 248 - KARNATAKA HIGH COURT - the CENVAT credit of service tax in respect of the goods transported agency used for transportation of finished goods upto the customer s premises is admissible to the assessee The portion of the definition to which the word means applies has to be construed restrictively as it is exhaustive. However, the portion of the definition to which the word includes applies has to be construed liberally as it is extensive - The exhaustive portion of the definition of input service deals with service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products - the appellants have a strong case for waiver of pre deposit pre-deposits waived till the disposal of the appeal Stay Granted.
Issues involved:
1. Eligibility for CENVAT credit on service tax paid on transportation of goods. 2. Denial of CENVAT credit by the Department based on the inclusion of freight element in the assessable value of goods. Analysis: The appeal in question pertains to M/s. Bisleri International Pvt. Ltd. seeking a waiver of pre-deposit of Rs.6,00,931/- as service tax and a penalty of Rs.10,000/- imposed by the original authority and confirmed by The C.C.E. (Appeals). The primary issue at hand is the eligibility of the appellants for CENVAT credit amounting to Rs.6,00,931/- paid on transportation of goods up to the customer premises between June 2005 and March 2008. The Department's stance revolves around the contention that the GT service post the removal of goods from the factory does not qualify as an input service for the manufacturer's final products. During the proceedings, the Ld. Departmental Representative reiterated that the denial of CENVAT credit was rooted in the fact that the freight element had not been factored into the assessable value of goods once they had left the place of removal. However, the presiding Judge, Mr. Sahab Singh, considered precedents set by the Karnataka High Court in the case of ABB Ltd. and the Hon'ble Gujarat High Court in the case of Parth Poly Wooven Pvt. Ltd. These judgments, along with references to decisions by Ambuja Cement, supported the admissibility of CENVAT credit concerning service tax on goods transported by an agency to the customer's premises. Consequently, Mr. Sahab Singh found merit in the appellant's case for the waiver of pre-deposit, ultimately granting a stay against the recovery of dues pending the appeal's disposal. The order was dictated and pronounced in open court, bringing the matter to a close.
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