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TMI Blog2016 (10) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in terms of Rule 2(1)(ii) of the CENVAT Credit Rules, 2004 and thereby enabling the manufacturer to take credit of the service tax paid on the value of such services. CENVAT Credit of input service on Goods Transport Agency service allowed - appeal allowed - decided in favor of appellant. - E/357/11-Mum - A/85911/16/SMB - Dated:- 19-2-2016 - Mr. S.S. Garg, Member (Judicial) Shri M.P. Kasale, Advocate for the appellant Shri Sanjay Hasija, Supdt.(AR) for the respondent ORDER This appeal is directed against Order-in-Appeal No. YDB/908/RGD/2010 dated 22.12.2010 wherein the Commissioner (Appeals) upheld the Order-in-Original. 2. Briefly the facts of the case re that the appellant are engaged in the manufacture of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escribed at Rule 2(l) of CENVAT Credit Rules, 2004 and therefore liable to be set aside and quashed. He further submitted that the Id. Commissioner (Appeals) has failed to appreciate that as per the condition of purchase order of their customer the appellant was supposed to deliver the goods at their Bhiwandi godown and the transport charges are to be borne by the appellant. He further submitted that the place of removal in the present case is not the factory gate but the Bhiwandi godown from where the goods are delivered to the customers as per the contract/ purchase order placed by the customers. He further submitted that CENVAT Credit Rules, 2004 is a beneficial piece of legislation and the benefit extended by the legislators should not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emoval, freight from depot to customer s premises would be covered by the means clause by the expression service used directly or indirectly or in relation to clearance of final products from place of removal . Similarly, where the factory is the place of removal freight from factory to customer s premises would be covered by the term service used directly or indirectly, in relation to clearance from place of removal. He also submitted that against the decision of the Larger Bench cited supra, the revenue went in appeal before the Hon l ble High Court of Karnataka and the Hon'ble High Court vide its judgment reported in 2011 (23) STR 97 dismissed the appeal of the revenue and upheld the decision of the larger bench. The Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court observed as under:- Services availed by a manufacturer for outward transportation of final products from the place of removal should be treated as input service in terms of Rule of CENVAT Credit Rules, 2004 and thereby enabling the manufacturer to take credit of the service tax on the value of such services. Definition of 'input service' has to be interpreted in the light of the requirements of business and it cannot be read restrictively so as to confine the same as a service received only, upto the factory or upto the depot of manufacturers. Expression 'activities relating to business' covers transportation up to the customers' place and it is an integral part of the manufacturing business and therefore, cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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