9911796707
TMI Blog2015 (8) TMI 1180X X X X Extracts X X X X X X X X Extracts X X X X ..... ut service in terms of Rule 2(l)(ii) of the CENVAT Credit Rules, 2004 and thereby enabling the manufacturer to take credit of the service tax on the value of such services. - in view of the decisions of the Hon’ble High Courts, it is clear that CENVAT credit can be availed for the outward transportation upto the place of removal. The Board s Circular has elaborately dealt with the issue of determination of place of removal and as per the terms of the purchase order delivery is upto the place of destination and freight was paid by the appellants, they are eligible for availing input service credit on outward transportation. - Impugned order is set aside - Decided in favour of assessee. - Appeal No. E/318/2011 - Final Order No. 40988 / 2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sportation rendering the same as ineligible under Rule 14 of CENVAT Credit Rules, 2004 read with proviso to Section 11A(1) of the Central Excise Act, 1944 and imposed penalty of equal amount under Rule 15 of CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act and also demanded appropriate interest. The Commissioner (Appeals) rejected the appeal of the assessee and upheld the order of the adjudicating authority by stating that the decision of the Larger Bench of the Tribunal in the case of ABB Ltd. Vs. CCE ST is not accepted by the Department and they have filed appeal before the Hon ble Karnataka High Court. Further reliance was placed on in the case of Roop Polymers Ltd. Vs. CCE 2011 (21) STR 74. 4. Learned couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Tribunal and it was held that whether services availed by the manufacturer of outward transportation of final products from the place of removal should be treated as an input service in terms of Rule 2(l)(ii) of the CENVAT Credit Rules, 2004 and thereby enabling the manufacturer to take credit of the service tax on the value of such services. The Hon ble High Court of Madras in the case of CCE, Chennai Vs. M/s. Borg Warner Morse TEC Murugappa Pvt. Ltd. (supra) in paragraph 11 has held as follows:- 11. With regard to the outward freight charges, the Kanartaka High Court in the case of CCE V. ABB Ltd., Bangalore reported in [2011] 44 VST 1, - 2011-TIOL-395-HC-KAR-ST which was rendered on the appeal filed by the Department as agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the context in which the phrase 'clearance of final products from the place of removal' is used. It includes the transportation charges. Because, after the final products has reached the place of removal, to clear the final products nothing more needs to be done, except transporting the said final products to the ultimate destination i.e. the customer's/buyer of the said product, apart from attending to certain ancillary services as mentioned above which ensures proper delivery of the finished product upto the customer. Therefore, all such services rendered by the manufacturer and included in the definition of 'input service'. However, as the legislature has chosen to use the word 'means' in this portion of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he final product upto the place of removal. Therefore, in the later portion of the definition, an outer limit is prescribed for outward transportation, ie up to the place of removal 7. I also find that Rule 2(l) of the CENVAT Credit Rules, 2004 is inclusive definition during the period in dispute. For better appreciation, Rule 2(l) is reproduced hereunder:- 2(l) input service means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final product upto the place of removal, and includes services used in relation to the setting up of modernisation, renovat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
