9911796707
TMI Blog2018 (7) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... al dismissed - decided against Revenue. - ST/70083/13 - Final Order No. 75449/2018 - Dated:- 21-3-2018 - SHRI P.K.CHOUDHARY, MEMBER(JUDICIAL) Shri D.Halder, AC(AR) for the Revenue Shri Sanjay Bhowmik, Advocate for the Respondent ORDER Per Shri P.K.Choudhary. Revenue is in appeal against the order of the Commissioner(Appeals), which has allowed the assessee s appeal for availing of Cenvat Credit of Service Tax paid on GTA Services for outward transportation of goods manufactured, taken as credit by the assessee for the period prior to 01.04.2008. The ld.Commissioner(Appeals) has relied upon the decision of Hon ble High Court of Karnataka in the case of CCEST, LTU, Bangalore v. A.B.B. Ltd. 2011 (23) S.T.R. 97 (K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input service' that was prevailing at the relevant time i.e. prior to April 1, 2008, the aforesaid contention of the Department cannot be accepted. As per the said definition, service used by the manufacturer of clearance of final products 'from the place of removal' to the warehouse or customer's place etc., was exigible for Cenvat Credit. This stands finally decided in Civil Appeal No. 11710 of 2016 (Commissioner of Central Excise Belgaum v. M/s. Vasavadatta Cements Ltd.) vide judgment dated January 17, 2018. The matter is squarely covered by the Board's Circular dated August 23, 2007, relevant portion whereof is as under: ISSUE: Up to what stage a manufacturer/consignor can take credit on the service tax paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The above observations and views explain the scope of the relevant provisions clearly, correctly and in accordance with the legal provisions. In conclusion, a manufacturer / consignor can take credit on the service tax paid on outward transport of goods up to the place of removal and not beyond that. 8.2 In this connection, the phrase 'place of removal' needs determination taking into account the facts of an individual case and the applicable provisions. The phrase 'place of removal' has not been defined in CENVAT Credit Rules. In terms of sub-rule (t) of rule 2 of the said rules, if any words or expressions are used in the CENVAT Credit Rules, 2004 and are not defined therein but are defined in the Central Excise Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... till the delivery of the goods in acceptable condition to the purchaser at his door step; (ii) the seller bore the risk of loss of or damage to the goods during transit to the destination; and (iii) the freight charges were an integral part of the price of goods. In such cases, the credit of the service tax paid on the transportation up to such place of sale would be admissible if it can be established by the claimant of such credit that the sale and the transfer of property in goods (in terms of the definition as under section 2 of the Central Excise Act, 1944 as also in terms of the provisions under the Sale of Goods Act, 1930) occurred at the said place. 8) As can be seen from the reading of the aforesaid portion of the circular, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
