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2015 (12) TMI 1774 - HC - Central ExciseCENVAT Credit - outward goods transportation agency service - Held that - This issue is covered by the judgment of Division Bench of this Court in case of Commissioner of Central Excise & Customs v. Parth Poly Wooven Pvt. Ltd. 2011 (4) TMI 975 - GUJARAT HIGH COURT , where it was held that By no stretch of imagination can it be stated that outward transportation service would not be a service used by the manufacturer for clearance of final products from the place of removal - credit allowed - appeal dismissed - decided against Revenue.
Issues:
Challenge to CESTAT order on Cenvat credit for outward goods transportation agency service. Analysis: The Revenue challenged the CESTAT order dated 30.4.2015, raising the question of whether the Tribunal was right in allowing the appeal of the respondent when the decision relied upon had been challenged by the Department before the Supreme Court. The issue revolved around Cenvat credit on outward goods transportation agency service utilized by the assessee for transporting manufactured goods. The judgment of the Division Bench in a previous case was cited, emphasizing that outward transportation qualifies as an input service under the definition. The court highlighted that the expression "includes" should not be used to limit the scope of the definition provided in the main body, and the intention of the Legislature was not to exclude outward transportation service. The definition of "input service" was amended, but the court refrained from making observations on post-amendment scenarios. The court concluded that outward transport service used by manufacturers for transporting finished goods up to the purchaser's premises falls within the definition of "input service" under the Cenvat Credit Rules, 2004. As a result, the Tax Appeal was dismissed. This detailed analysis of the judgment showcases the key legal arguments, interpretations of relevant provisions, and the court's reasoning behind dismissing the Tax Appeal challenging the CESTAT order regarding Cenvat credit for outward goods transportation agency service.
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