2019 (2) TMI 259 - AT - Central Excise

CENVAT Credit - input services - Courier service - Held that - As regard the credit on Courier service up to 01.04.2008 is not under dispute as held that the Hon ble Gujarat High Court in the case of Ambalal Sarabhai Enterprise Ltd. 2014 (1) TMI 118 - GUJARAT HIGH COURT - the credit up to the 31.03.2008 is admissible. Cenvat Credit on Courier service from 01.04.2008 onwards - Held that - Since Ld. Counsel has made submissions that lower authority has not verified whether the Courier charges is included in the assessable value the matter needs to be re-considered only on this aspect. Thereafter to decide the admissibility of the Cenvat Credit on Courier service post on 01.04.2008 matter is remitted. Appeal allowed by way of remand.

Summary

Issues involved: Admissibility of Cenvat Credit in respect of Courier service.

Analysis:

The appellant argued that the credit was denied on the grounds that the Courier service was used for clearance of goods from the place of removal. The appellant contended that the Courier service was utilized not only for goods cleared for the final product but also for sending and receiving documents. It was emphasized that the entire credit on the same ground cannot be denied. Additionally, it was argued that even though there was an amendment in the definition from 01.04.2008 regarding services eligible up to the place of removal, Courier services, being used in the overall manufacturing capacity, were not affected by this amendment. The appellant further submitted that even if the service fell under the category of service used for clearance of goods up to the place of removal, the value of the Courier services was included in the value of the final product, and excise duty was discharged on such value, making the credit admissible. The appellant also relied on various judgments to support their arguments.

The Revenue, represented by the Deputy Commissioner, reiterated the findings of the impugned order without providing any new arguments.

After considering the submissions from both sides and examining the record, the Member (Judicial) found that the credit on Courier service up to 31.03.2008 was not disputed, citing a previous judgment by the Hon'ble Gujarat High Court. Therefore, the Member held that the credit up to this date was admissible. However, regarding the Cenvat Credit on Courier service from 01.04.2008 onwards, the Member noted that the lower authority had not verified whether the Courier charges were included in the assessable value. As a result, the Member decided that the matter needed to be reconsidered solely on this aspect to determine the admissibility of the Cenvat Credit on Courier service post 01.04.2008. Consequently, the appeal was disposed of by way of remand to the adjudicating authority for further examination.