2019 (5) TMI 454 - AT - Central Excise

CENVAT Credit - outward freight/transportation and outward delivery services (outward GTA Service) - period from 2005-06 to 2007-08 - HELD THAT - The issue decided in the case of COMMISSIONER OF CENTRAL EXCISE, BELGAUM VERSUS M/S. VASAVADATTA CEMENTS LTD. 2018 (3) TMI 993 - SUPREME COURT , where it was held that from 1-4-2008, with the aforesaid amendment, the Cenvat credit is available only upto the place of removal whereas as per the amended Rule from the place of removal which has to be upto either the place of depot or the place of customer, as the case may be. Credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
1. Restoration of appeal dismissed for non-prosecution.
2. Contravention of provisions of CCR, 2004 regarding Cenvat Credit.
3. Interpretation of the definition of "input service" under Central Excise Act, 1944.

Analysis:
1. The judgment addresses the issue of restoring an appeal dismissed for non-prosecution. The appellant filed a Miscellaneous Application seeking restoration as the earlier counsel was unable to attend the hearing due to illness without prior communication or adjournment request. The consultant for the appellant emphasized a strong case on merits, leading to the appeal's restoration by recalling the dismissal order. Both parties consented to proceed with the appeal hearing.
2. The case involves allegations of contravention of provisions of Rule 2(a), 3, 4 & 9(3) of CCR, 2004 related to inadmissible availment of Cenvat Credit on outward freight and transportation services. The Adjudicating Authority confirmed the demand, imposed penalties, and upheld by the Lower Appellate Authority. The Tribunal considered the facts and arguments presented by both sides.
3. The Tribunal examined the interpretation of the definition of "input service" under the Central Excise Act, 1944, citing relevant Supreme Court decisions. Referring to Commissioner of Central Excise, Belgaum vs. Vasavadatta Cements Ltd., the Court clarified the scope of input services used directly or indirectly in the manufacture and clearance of final products. The judgment highlighted the importance of transportation services "from the place of removal" up to a certain point, emphasizing the eligibility of Cenvat credit for such services. The Tribunal aligned its decision with the Supreme Court's interpretation, setting aside the impugned order and allowing the appeal with consequential benefits to the appellant.

This detailed analysis covers the restoration of the appeal, contravention of CCR, 2004 provisions, and the interpretation of the "input service" definition, providing a comprehensive understanding of the legal judgment.