2021 (9) TMI 495 - AT - Central Excise

CENVAT Credit - input services - outward transportation of finished goods upto the depot of the appellant - Place of removal - beyond the factory gate or not - entitlement to the credit when the valuation was done under section 4A of Central Excise Act - HELD THAT - Considering the Chhattisgarh High Court decision in the case of Ultratech Cement and Rallis India Limited 2014 (8) TMI 788 - CHHATTISGARH HIGH COURT of this tribunal and board circular dated 02.02.2016 held that whether valuation is done under 4 or 4A of Central Excise Act, the depot being place of removal the credit upto depot on outward transportation is admissible. The issue is no more under dispute and has been settled as there is no appeal filed by the revenue as per record of this appeal - the Cenvat credit on outward transportation upto depot is admissible - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Entitlement to Cenvat Credit on service tax paid on outward transportation of finished goods up to the depot when valuation done under section 4A of Central Excise Act.

Analysis:
The issue before the Appellate Tribunal was whether the appellant is entitled to the Cenvat Credit for service tax paid on outward transportation of finished goods up to the depot when the valuation was conducted under section 4A of the Central Excise Act. The appellant argued that the credit was denied by the Learned Commissioner based on the premise that since the goods were valued under section 4A, the factory gate should be considered the place of removal, making Cenvat credit inadmissible for transportation beyond the factory gate. However, the appellant cited a previous order where the credit was allowed on identical facts, suggesting that the issue was no longer res-integra. The Authorized Representative for the revenue reiterated the findings of the impugned order.

Upon careful consideration of the submissions and perusal of records, the Tribunal found that the facts in the present case were identical to a previous case decided by the tribunal on 31.10.2017. Referring to the decisions of the Chhattisgarh High Court and relevant tribunal and board circulars, it was held that regardless of valuation under section 4 or 4A of the Central Excise Act, the depot being the place of removal, the credit for outward transportation up to the depot is admissible. The Tribunal also reproduced the decision from the previous case to support this conclusion, noting that the issue was settled as there was no appeal filed by the revenue as per the record of the current appeal.

In light of the precedent set by the previous tribunal decision and the legal principles established, the Tribunal concluded that the Cenvat credit on outward transportation up to the depot is indeed admissible. Consequently, the impugned order was set aside, and the appeal was allowed, granting relief as per the law.