2017 (4) TMI 639 - AT - Central Excise

CENVAT credit - Manpower Services towards loading and unloading of finished goods at the customer s premises - Alleging that the service rendered at the customer s premises having no nexus with the manufacturing activity as its cost is not included in the assessable value credit denied - Held that - service tax paid on service rendered for loading and unloading the goods as a condition of sale is eligible to credit - However only the fact needs be ascertained whether the appellant by the condition of sale is required to deliver goods at the premises of the customer and the charge is included in the price of the goods - detail scrutiny of the evidences is required to ascertain the eligibility of CENVAT credit on the said service - appeal allowed by way of remand.

Summary

Issues:
- Eligibility for CENVAT credit on service tax paid for Manpower Services used in loading and unloading of goods at customer's premises.

Analysis:
The judgment pertains to three appeals filed against orders-in-appeals passed by the Commissioner (Appeals) of Central Excise, Customs, and Service Tax-Surat-I. The appellants, engaged in the manufacture and supply of various gases, availed CENVAT credit on service tax paid for "Man Power Recruitment & Supply service" used in loading and unloading gas cylinders. The demands for recovery of the credit were confirmed with interest and penalty, leading to the filing of appeals. The central issue revolves around the eligibility of the appellants to claim CENVAT credit on the service tax paid for the manpower services utilized in loading and unloading goods at the customer's premises.

The appellant's advocate argued that the condition of sale was ex-delivery, as per the purchase orders issued by customers. However, he acknowledged that these documents were not presented before the Adjudicating Authority, hindering the establishment of the condition of sale at the customer's premises and whether the delivery charges were included in the price. The advocate requested a remand to the Adjudicating Authority for consideration of these crucial pieces of evidence.

The Revenue's Authorized Representative reiterated the findings of the Ld Commissioner (Appeals), maintaining the stance taken in the previous proceedings. The Tribunal delved into the core issue of whether the appellants were entitled to CENVAT credit on the service tax paid for Manpower Services used in loading and unloading goods at the customer's premises. The legal principle was clarified that service tax paid for loading and unloading goods as a condition of sale is creditable. The Tribunal noted that prima facie evidence from the purchase orders suggested that the loading and unloading charges were included in the product cost, and the appellants were obligated to deliver gas cylinders at the customer's premises as per the purchase orders. However, a detailed scrutiny of the evidence was deemed necessary to conclusively determine the eligibility of CENVAT credit on the service in question.

In conclusion, the impugned orders were set aside, and the matter was remanded to the Adjudicating Authority for a thorough examination of the documents and evidence to assess the appellant's claim for CENVAT credit. The appeals were allowed by way of remand, emphasizing the importance of scrutinizing the evidence to ascertain the eligibility of the appellants for the claimed credit.