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2023 (8) TMI 603 - AT - Service TaxCENVAT Credit - outward freight under goods transport agency service - place of removal - appellant selling goods as per the contract at the gate of the buyer s premises - HELD THAT - The issue has been settled by the Hon ble High Court of Karnataka in the case of Bharat Fritz Werner Ltd. 2022 (7) TMI 352 - KARNATAKA HIGH COURT , wherein the Hon ble High Court held the place of removal is buyer s premises. Following the decision of Hon ble Karnataka High Court in the case of Bharat Fritz Werner Ltd., it is held that as per the contracts, the appellant is required to deliver the goods at buyer s place, therefore, till the goods reaches up to the place of buyer, the ownership of the goods remains with the appellant. In that circumstances, the appellant is entitled to take cenvat credit of service tax paid on outward transportation under the category of goods transport agency service . There are no merit in the impugned order and the same is set aside - appeal allowed.
Issues involved:
The issue involved in the judgment is whether the appellant, a manufacturer of Refractory products, is entitled to take cenvat credit on outward freight under 'goods transport agency service' for transportation of final products beyond the factory premises up to the place of the buyer. Comprehensive details of the judgment for each issue involved: 1. The appellant availed cenvat credit on outward freight for transportation of goods up to the place of the buyer under the 'goods transport agency service' during 2005-06 to 2008-09. The Revenue contended that the appellant is not entitled to this credit for transportation beyond the factory premises, leading to denial of the credit. The appellant challenged this denial before the Tribunal. 2. The appellant argued that until March 31, 2008, the issue was settled by the Hon'ble Karnataka High Court, which held that the input service of goods transportation service is available up to the place of removal. Referring to the decision in the case of ABB Ltd. v. Commissioner of C.Ex. & S.T., Bangalore, the appellant asserted their entitlement to cenvat credit. For the period post-April 1, 2008, the appellant contended that as they paid service tax on outward freight for transportation of final products to the buyer's premises, and retained ownership until delivery, they are not liable for service tax. Citing the case of Bharat Fritz Werner Ltd. v. CCE, Bangalore, the appellant sought to set aside the impugned order. 3. The department's Authorized Representative supported the impugned order. 4. After hearing both parties and considering their submissions, the Tribunal examined the central issue of whether the appellant, selling goods at the buyer's premises, is entitled to cenvat credit on outward freight under 'goods transport agency service.' 5. The Tribunal noted the decision of the Hon'ble High Court of Karnataka in the case of Bharat Fritz Werner Ltd., where it was held that the place of removal is the buyer's premises. Based on this precedent, the Tribunal ruled in favor of the appellant, stating that until the goods reach the buyer's place, the ownership remains with the appellant, allowing them to take cenvat credit on service tax paid for outward transportation under 'goods transport agency service.' 6. Consequently, the Tribunal found no merit in the impugned order and set it aside, allowing the appeal with any consequential relief. The decision was pronounced in open court.
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