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TMI Blog2010 (3) TMI 922X X X X Extracts X X X X X X X X Extracts X X X X ..... n the raw materials (inputs), finished goods and others; that the GTA service, used for transportation of finished goods from factory to the customers, from depot to the customers, and the transport of trading goods, cannot be considered as input service in terms of Rule 2(l) of Cenvat Credit Rules, 2004, (hereinafter referred to as Cenvat rules); that on the above facts the appellant was issued with 2 SCNs directing to show cause as to why the Cenvat Credit of Rs. 4,53,892/- (SCN dated 27-10-2006) and Cenvat Credit of Rs. 1,99,711/- (SCN dated 15-11-2006) availed during the period from August, 2005 to September, 2006 should not be denied and recovered under Rule 14 of Cenvat Credit Rules, read with proviso to Section 11A(i) of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and CBEC instruction and hence the impugned order is not sustainable; (ii) that the appellant was paying excise duty on the actual sale price which includes the element of cost of transportation from the factory to the customer s premises and hence the amount of transportation cost cannot be vivisected; (iii) that it is settled position of law that once the cost of transportation service is considered into the value for the purpose of payment of duty, denying the credit is not correct, and the appellant relies on the following decisions; (a) 1993 (68) E.L.T. 258 (Tri.) - Swaraj Mazda; (b) 1994 (72) E.L.T. 446 (Tri.) - Heal Well Pharma; (c) 2000 (117) E.L.T. 766 (Tri.) - Glaxo India Ltd; (d) 2001 (127) E.L.T. 755 (Tri.) - Akhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) to the appellant s factory, transportation of finished goods from the factory to the depot, from the depot to the customer s premises, transportation of final product from the factory to the customers premises, transportation of marginal (quantum) of trading goods to the customer s end could be considered as input service in terms of Rule 2(l) of Cenvat Credit Rules. There cannot be any dispute with regard to availment of Cenvat Credit of service tax paid on GTA service for inward transportation of raw materials. The DC has also held that the appellant is eligible to avail Cenvat Credit of service tax paid on GTA service used for the transportation of finished goods from factory to depot since the depot is considered as place of removal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y will not be transported separately because it is not economically viable. Under the above circumstances, it can be safely concluded that, at a time, lesser quantity of trading goods was also transported with other finished goods of the appellant and the appellant paid the freight on such transportation. Further in view of the above it may not be possible to segregate the service tax attributable to the trading goods. Since the service tax was paid on the assessable value, which includes freight in the trading goods also, there is no revenue loss to the Government, accordingly it will not be justifiable to deny the small portion of credit attributable on account of trading which is otherwise invisible. Further when the Assessable Value is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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