2017 (10) TMI 1050

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..... ates but if goods are delivered as per the agreement at the place of buyer, the assessee is entitled to avail CENVAT credit on outward transportation service - credit allowed - appeal allowed - decided in favor of appellant.
Shri Ashok Jindal, Judicial Member Mr. G. Shivadass, Advs V. Lakshmikumaran For the Appellant Dr. J. Harish, AR For the Respondent ORDER Per : Ashok Jindal The appellant is in appeal against the impugned order wherein CENVAT credit on outward transportation service has been denied on the premise that as the appellant is delivering goods at specified rates and paying duty under Section 4A, therefore on outward transportation they are not entitled to avail CENVAT credit. 2. The contention of the learned counsel f .....

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..... lar issued by the Board of Central Excise and Customs, New Delhi (the Board) to hold that in case the duty is charged on the specified rate, then the place of removal will be factory gate. 27. If the legislature or the Central Government, or the Board wanted the place of removal to be the factory gate in case of payment of excise duty on specified rate then they could so define it in the Act or in the Rules or in any of the circulars. They having failed to do so have clarified their intention that in such a case factory gate cannot be place of removal as a presumption of law. 28. In view of above, the presumption by the Tribunal that the place of removal is factory gate of the manufacturer in case the excise duty is charged on the speci .....

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..... d to such benefit for the period 1-4-2008 to 31-7-2008 which has been denied to it by the authorities below." 6. As the issue has already been settled by the Hon'ble Karnataka High Court in the case of Madras Cements Ltd. (supra) wherein it has been held that although goods have been sold at specified rates but if goods are delivered as per the agreement at the place of buyer, the assessee is entitled to avail CENVAT credit on outward transportation service. 7. In that circumstance, I hold that appellant has correctly availed CENVAT credit on outward transportation service in the facts of the case. Therefore, the impugned order is set aside and the appeal is allowed with consequential relief, if any. (Order was dictated in Open Court on .....

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