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TMI Blog2016 (7) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... freight element though admittedly, such freight forms part of the assessable value. Such assertion will result in self-contradiction. - Credit cannot be denied - Decided against the revenue. - Excise Appeal No.E/51340/2016-EX(SM) - Final Order No.52448/2016 - Dated:- 1-7-2016 - SHRI B. RAVICHANDRAN, MEMBER (TECHNICAL) Rep. by Shri Dharam Singh, AR for the appellant. Rep. by Shri Rajesh Gupta, CA for the respondent. ORDER Per B. Ravichandran: The appeal is by Revenue against order dated 28.01.2016 of Commissioner (Appeals-I), Meerut. The respondents are engaged in the manufacture of Resin, Catalyst, thinner, varnish, etc. liable to central excise duty. The dispute relates to eligibility of the respondent for ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Hon ble Supreme Court in Ispat Industries Ltd. (supra) for the purpose of denial of cenvat credit to the respondent. He submitted that the amended definition of input services under Rule 2 (l) of Cenvat Credit Rules, 2004 clearly stipulates that outward transportation upto the place of removal is eligible for credit. In the respondent s case, it an admitted fact that the goods were cleared on FOR basis and the money consideration is paid only on the delivery of goods to the buyers and upto such delivery, the risk of the goods is with the respondent. He further submitted the various documents including the purchase order from the buyers and invoice to reiterate that the sale in effect is happening only upon delivery of the goods in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court observed that service tax and excise duty are consumption taxes to be borne by the consumer and therefore if credit is denied on transportation service the levy of service tax on transportation will become a tax on business rather than being a consumption tax. Hon ble High Court also agreed with the Tribunal s view in order dated 18.05.2009 wherein the Hon ble Tribunal has held that the submission of the Revenue that the CENVAT credit cannot be allowed for service if the value thereof does not form part of the value subjected to excise duty runs counter to the fundamental concept of service tax laid down in All India Federation of Tax Practitioners s case (supra). Applying the ratio of the judgements as discussed, hereinabove, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, 2004. The definition available under Section 4 has been taken to interpret the same for credit purposes. Here, in the present case, the respondent is clearly selling their goods on the basis of purchase order, which clearly stipulates that 100% payment will be only on receipt of goods delivered at the premises of the buyer. Upto that the insurance and transport of the goods is at the vendor s cost. In these factual circumstances, the respondent have undertaken the transportation and the value of such transportation is apparently included for the purpose of discharging central excise duty on the finished goods. The freight was integral part of the value in the present case has been admitted by the Original Authority. Such being the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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