2018 (4) TMI 1019 - AT - Central Excise

CENVAT Credit - transportation of finished goods from the factory premises - Held that - Tribunal in respondent own case Tatyasaheb Kore Warana S.S.K. Ltd. Versus C.E.E., Kolhapur 2015 (7) TMI 506 - CESTAT MUMBAI has held that Appellant is entitled to take CENVAT credit on outward transportation service in the case of transportation of levy sugar upto the railway station and transportation of export sugar upto the port - credit allowed - decided against Revenue.

Summary

Issues: Revenue's appeal against setting aside demands for CENVAT Credit on transportation of finished goods.

Analysis:
1. The appeal was filed by the Revenue against an order-in-appeal dated 13.05.2014, where the first appellate authority set aside the demands confirmed by the adjudicating authority regarding the availment of CENVAT Credit on service tax paid for the transportation of finished goods from the factory premises of the respondent.

2. The learned Counsel pointed out that a similar issue was challenged before the Tribunal in Appeal No. E88419/14-Mum, where the bench, through final order No. A/1526/14/SMB/C-IV dated 27.11.2014, ruled in favor of the respondent, allowing them to take CENVAT Credit on the service tax paid for outward transportation service.

3. The Revenue's representative expressed a desire to confirm whether the Revenue had filed an appeal against the Tribunal's decision.

4. The presiding Member, considering the Tribunal's previous decision in favor of the assessee on the same issue of CENVAT Credit availment, concluded that the Revenue's appeal lacked merit and was therefore rejected.

5. Addressing the concern raised by the Revenue's representative about the possibility of an appeal by the Revenue, the Member clarified that even if an appeal had been filed, the decision's ratio would apply, and since the issue was identical in both the Revenue's and the assessee's appeals, the representative's point did not alter the outcome. Consequently, this issue was disposed of.

6. The appeal by the Revenue was ultimately rejected based on the Tribunal's previous ruling in favor of the assessee, allowing them to avail CENVAT Credit on the service tax paid for outward transportation services.