2017 (4) TMI 1631 - AT - Central Excise

CENVAT Credit - input services - outward transportation of goods up to the place of customer - Place of Removal - HELD THAT - This issue has been considered in the appellant s own case viz. CCE ST, Indore Vs. Gabriel India Ltd. by the Tribunal. The said decision has held that assessee is entitled to avail Cenvat credit on outward transportation service. The impugned order is set aside and both the appeals are allowed.

Summary

Issues: Admissibility of Cenvat credit for outward transportation of goods.

Analysis:
The appellant appealed against the Order-in-Appeal denying Cenvat credit for service tax on outward transportation of goods up to the customer's place. The issue revolved around whether the appellant was entitled to avail Cenvat credit for such services. The Tribunal referred to a previous case, CCE & ST, Indore Vs. Gabriel India Ltd., where it was held that the assessee could claim Cenvat credit on outward transportation services if the conditions of the CBEC Circular No. 97/08/2007 were met. In light of this precedent, the Tribunal allowed the appeals, setting aside the impugned order.

The Tribunal observed that since the appellant had complied with the conditions specified in the CBEC Circular, they were entitled to avail Cenvat credit on outward transportation services. The decision in the previous case established a precedent that supported the appellant's claim for Cenvat credit in the present case. The Tribunal, therefore, concluded that the impugned order denying the credit was not sustainable, and both appeals were allowed in favor of the appellant.

In summary, the judgment addressed the issue of admissibility of Cenvat credit for service tax paid on outward transportation of goods up to the customer's place. By citing a previous decision and considering the compliance with relevant conditions, the Tribunal ruled in favor of the appellant, allowing them to avail the Cenvat credit. The decision highlighted the importance of adhering to prescribed guidelines and established precedents in determining the eligibility for such credits.