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TMI Blog2017 (1) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - Appeal dismissed. - E/67/2009 - A/31423/2016 - Dated:- 14-12-2016 - Ms. Sulekha Beevi, C.S., Member(Judicial) Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligible for the input service credit of service tax paid on outward transportation of goods for the reason that the respondents had not included the freight element in the assessable value. According to the Department the factory gate becomes the place of removal. The Ld. AR, Shri. Arun Kumar appearing on behalf of the Department vehemently argued that the assessments being provisional and the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the judgment passed by the Larger Bench in the case of ABB Ltd., 2009 (15) STR 23 (Tri. LB), and also the judgment passed by the jurisdictional High Court. The Larger Bench of Tribunal in the case of ABB Ltd., has analysed the contention put forward by the Department regarding the non inclusion of freight charges in the assessable value. The relevant portion is re-produced as under: I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly or indirectly, in relation to clearance from place of removal . 18. For admissibility to credit for outward transportation there is no requirement that the cost of freight should enter into the transaction value of the manufactured goods. According to the department, since the cost of outward transportation does not form part of the transaction value of the manufactured goods as def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and provision of services. VAT is a consumption tax as it is borne by the consumer. 7. In the light of what is stated above, it is clear that Service Tax is a VAT which in turn is destination based consumption tax in the sense that it is on commercial activities and is not a charge on the business but on the consumer and it would, logically, be leviable only on services provided within the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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