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TMI Blog2017 (10) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax paid on the outward freight under transaction value as per the Section 4 of the Central Excise Act. Liability of interest - Held that: - based upon the quantum which has been arrived at by the adjudicating authority, the appellant has to discharge the interest on the amount of CENVAT credit which has been held ineligible. Penalty - Held that: - since the issue is of interpretation, there is no warrant to visit the appellant with any penalties. Appeal allowed by way of remand. - E/21376/2015-SM - 22318/2017 - Dated:- 21-9-2017 - M. V. Ravindran (Judicial Member) And S. S. Garg (Judicial Member) For the Appellant : Girish K, Chartered Accountant For the Respondent : Dr. J. Harish, Dy. Commissioner(AR) ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the purchasers wherein it has been clearly mentioned that the price is ex-works of purchasers, hence on payment of freight charges, service tax liability arises on the appellant, under reverse charge mechanism and correctly availed CENVAT credit. 5. Learned AR on the other hand submits that as regards the place of removal, provisions of Section 4 cannot be made applicable to Section 4A of the Central Excise Act, 1944 as Section 4A value is worked out based on all the costs that may be incurred on a finished goods. Accordingly, he submits that even the Tribunal in the case of Ultratech Cement Ltd. Vs. CCE, Chandigarh [2013(30) STR 220 (Tri. Del.)] and Hero Motocorp Ltd. Vs. CCE, Delhi-III [2014(36) STR 1128 (Tri. Deol.)] has held that p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igible to avail the CENVAT Credit of the service tax paid on outward freight transaction value needs to be upheld. At the same time, to quantify the exact CENVAT credit available to the appellant, the matter needs to be sent back to the adjudicating authority. 7. In view of the above findings, the matter is remitted back to the adjudicating authority for limited purpose of arriving at the quantum of CENVAT that is available to the appellant on the service tax paid on the outward freight under transaction value as per the Section 4 of the Central Excise Act. Appellant is at liberty to produce documents to claim such credit. 8. As regards the interest liability, based upon the quantum which has been arrived at by the adjudicating author ..... X X X X Extracts X X X X X X X X Extracts X X X X
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