2017 (3) TMI 841 - AT - Central Excise

CENVAT credit - outward transportation availed by the appellant - Held that - matter remanded to the original adjudicating authority to reconsider the matter based on the guidelines contained in the Board s Circular No. 97/8/2007 dated 23.08.2007 and other related subsequent circulars as applicable - appeal allowed by way of remand.

Summary

Issues:
Eligibility of Cenvat Credit on outward transportation for the period April, 2011 to December, 2011.

Analysis:
The issue in this appeal pertains to the eligibility of Cenvat Credit on outward transportation for a specific period. The Original authority disallowed the credit, leading to a demand for payment under Rule 14 of Cenvat Credit Rules, 2004, along with interest and a penalty under Rule 15 (2) of the same rules. Upon appeal, the Commissioner (Appeals) upheld the Original authority's decision, prompting the appellants to bring the matter before the Appellate Tribunal.

During the hearing, the appellant's advocate referenced various judgments by different High Courts, emphasizing the relevance of Circular N0. 97/8/2007-ST issued by the Board on the issue of service tax paid on transportation during the removal of excisable goods. The advocate argued that the appellant's invoices did indicate the destination and that the goods were transported in their own trucks to the customer's location. The advocate also highlighted a previous decision by CESTAT, Chennai, in the appellant's own case, where a similar matter was remanded for further consideration.

On the other hand, the respondent reiterated the correctness of the impugned order. After hearing both sides, the Tribunal decided to remand the matter to the original adjudicating authority for reconsideration. The Tribunal instructed the authority to review the case based on the guidelines provided in Circular No. 97/8/2007 and other relevant subsequent circulars, along with considering specific case laws mentioned in the judgment. The original authority was directed to allow the appellants to present all necessary evidence and documentation before passing a reasoned order.

In conclusion, the appeal was disposed of with the decision to remand the matter for further consideration by the original adjudicating authority, ensuring a fair review based on the established guidelines and case laws mentioned in the judgment.