2016 (3) TMI 892 - AT - Central Excise

Eligibility to avail CENVAT Credit on the Service Tax aid on outward transportation of the goods for the period March, 08 to Dec, 09 - Held that - Hon ble High Court of Karnataka in the case of Madras Cement Ltd. Vs. Commissioner of Central Excise 2015 (7) TMI 1001 - KARNATAKA HIGH COURT for the proposition that the CENVAT Credit is available to them if it is demonstrated that the goods are delivered at buyer s place and on delivery only the title gets passed on to the buyers

Summary

Issues Involved:
Eligibility for CENVAT Credit on Service Tax aid for outward transportation of goods from March 2008 to December 2009.

Detailed Analysis:

Issue 1: Eligibility for CENVAT Credit

Analysis:
The primary issue in this case pertains to the eligibility of the appellant to avail CENVAT Credit on the Service Tax aid for outward transportation of goods during the period from March 2008 to December 2009. The appellant asserts that the title of the goods transfers to the buyers upon delivery to them, fulfilling the conditions outlined in the Board's Circular dated 23.8.2007. The adjudicating authority acknowledged this and allowed the CENVAT Credit, but the first appellate authority overturned this decision. The appellant relied on the judgment of the Hon'ble High Court of Karnataka in a specific case to support their claim. On the other hand, the AR cited a judgment of the Hon'ble High Court of Kolkata to counter the appellant's argument. The Tribunal examined the factual findings regarding the ownership of goods and delivery terms, emphasizing the importance of the intention of the parties regarding the transfer of property. The Tribunal also highlighted the relevance of the Circular dated 20.10.2014 in determining the place of removal and completion of sale. Ultimately, the Tribunal concluded that the sale was finalized only upon delivery to the buyer's address, entitling the appellant to the CENVAT Credit even post-amendment to the definition of input service.

Conclusion:
The Tribunal found merit in the appellant's arguments, considering the factual findings and legal precedents cited. The judgment of the Hon'ble High Court of Karnataka was deemed applicable to the present case, supporting the appellant's entitlement to the CENVAT Credit. The Tribunal set aside the impugned order and allowed the appeal, ruling in favor of the appellant and against the revenue authorities. The decision emphasized the significance of the delivery location in determining the completion of the sale and the eligibility for CENVAT Credit on outward transportation of goods.

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