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TMI Blog2011 (4) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... id on outward transportation of export goods up to port of export which is the actual place of removal in the case of export is admissible - the assessees are eligible for the credit on the input service on outward transportation up to the place of removal - The appeal filed by the Revenue is not sustainable and fails. - E/403/10 & E/CO/118/10 - - - Dated:- 13-4-2011 - Hon ble Dr. P. Babu, Member (Technical) Appellants : Shri R. Nagar, SDR Respondent : None Per: Dr. P. Babu: M/s. Kanoria Chemicals and Industries Ltd., Ankleshwar, are engaged in the manufacture of excisable goods and are availing cenvat credit of duty paid on inputs, capital goods and service tax paid on input services. They availed input service c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s denied to the assessee as they have not produced any documentary proof that the sale and transfer of property occurred at the buyers place. Commissioner (Appeals) in his findings stated that the appellant in their submissions have contended that in the export transactions, under reference, the prices were FOB prices and thus the prices were inclusive of freight till port from where exports were carried out and in case of export the place of removal is always the port from where the export is carried out. 5. The Tribunal in the case of CCE Rajkot Vs. Adani Pharmachem P. Ltd. reported in 2008 (232) ELT 804 (Tri. Ahmd.) While dealing with the issue of place of removal considered the Board s Master Circular No.97/8 which held that in expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le High Court of Karnataka in the case of CCE ST, Bangalore Vs. ABB Ltd. Vadodara reported in 2011-TIOL-395-HC-KAR-ST on appeal (from 2009-TIOL-830-CESTAT-BANG-LB) made the following observations which are very relevant. 32. In Gujarat Ambuja Cements case, the Principle Bench of CESTAT, New Delhi, had taken the view post sale transport of manufactured goods is not an input in manufacture. The two clauses in the definition take care to circumscribe input credit by stating that service used in relation to the clearance from the place of removal and service used for outward transportation up to the place of removal are to be treated as input service. The first clause does not mention transport service in particular. The second clause res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal products from the place of removal and the subsequent amendment by notification 10/2008 CE(NT) dated 1.3.2008 substituting the word from in the said phrase in place of upto makes it clear that transportation charges were included in the phrase clearance from the place of removal upto the date of the said substitution and it cannot be included within the phrase activities relating to business . 7. In view of the facts and legal position as discussed above, I find that the assessees are eligible for the credit on the input service on outward transportation up to the place of removal. The appeal filed by the Revenue is not sustainable and fails. The related issues like limitation, imposition of penalty and recovery of interest therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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