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TMI Blog2019 (12) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... controversy involved in the present cases, the appeals were analogously heard and by a common order, they are being disposed of by this Court. Facts of C.E.A.No.18/2019 are narrated hereunder. 02-The present appeal has been filed under Section 35-G of the Central Excise Act, 1944 by the appellant M/s. Mahle Engine Components India Pvt. Ltd. being aggrieved by order dated 17/10/2018 passed under Section 35 C (1) of the Custom Excise and Service Tax Appellate Tribunal, New Delhi confirming the disallowance of CENVAT Credit of Service Tax amounting to ₹ 1,68,882/- paid on outward transportation of goods from the premises of the appellant manufacturer to the premises of buyer during the period from April, 2006 to March, 2011. 03-The facts of the case reveal that the appellant a Private Limited Company is having a manufacturing Unit at Pithampur, District Dhar and is engaged in manufacturing process of C.I. Castings and engine parts. The appellant is also availing CENVAT Credit of duty paid on inputs / capital goods and services as provided under the provisions of CENVAT Credit Rules, 2004 (CCR). 04-During an audit, the Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is treated as input service. This amendment has changed the entire scenario. The benefit which was admissible even beyond the place of removal now gets terminated at the place of removal and doors to the cenvat credit of input tax paid gets closed at that place. This credit cannot travel therefrom. It becomes clear from the bare reading of this amended Rule, which applies to the period in question that the Goods Transport Agency service used for the purpose of outward transportation of goods, i.e. from the factory to customer s premises, is not covered within the ambit of Rule 2(l)(i) of Rules, 2004. Whereas the word from is the indicator of starting point, the expression upto signifies the terminating point, putting an end to the transport journey. We, therefore, find that the Adjudicating Authority was right in interpreting Rule 2(l) in the following manner: The input service has been defined to mean any service used by the manufacturer whether directly or indirectly and also includes, interalia, services used in relation to inward transportation of inputs or export goods and outward transportation upto the place of removal. The two clauses in the defini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STR 364 (Tri), it was held that after the final products are cleared from the place of removal, there will be no scope of subsequent use of service to be treated as input. The above observations and views explain the scope of relevant provisions clearly, correctly and in accordance with the legal provisions. 8.The aforesaid order of the Adjudicating Authority was upset by the Commissioner (Appeals) principally on the ground that the Board in its Circular dated August 23, 2007 had clarified the definition of place of removal and the three conditions contained therein stood satisfied insofar as the case of the respondent is concerned, i.e. (i) regarding ownership of the goods till the delivery of the goods at the purchaser s door step; (ii) seller bearing the risk of or loss or damage to the goods during transit to the destination and; (iii) freight charges to be integral part of the price of the goods. This approach of the Commissioner (Appeals) has been approved by the CESTAT as well as by the High Court. This was the main argument advanced by the learned counsel for the respondent supporting the judgment of the High Court. 9.We are afraid that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto 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 Act, 1944 or the Finance Act, 1994, they shall have the same meaning for the CENVAT Credit Rules as assigned to them in those Acts. The phrase place of removal is defined under section 4 of the Central Excise Act, 1944. It states that,- place of removal means- (i) a factory or any other place or premises of production or manufacture of the excisable goods ; (ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be stored without payment of duty ; (iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory; from where such goods are removed. It is, therefore, clear that for a manufacturer /consignor, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condly, if such a circular is made applicable even in respect of post amendment cases, it would be violative of Rule 2(l) of Rules, 2004 and such a situation cannot be countenanced. 13.The upshot of the aforesaid discussion would be to hold that Cenvat Credit on goods transport agency service availed for transport of goods from place of removal to buyer s premises was not admissible to the respondent. Accordingly, this appeal is allowed, judgment of the High Court is set aside and the Order-in-Original dated August 22, 2011 of the Assessing Officer is restored. In the aforesaid case, it has been held that the assessee was not entitled for CENVAT Credit for input services goods transport agency service availed for transport of goods from the place of removal to buyer's premises and therefore, as the issue has been concluded by the judgment delivered by the Hon'ble Supreme Court, no question of law arises in the present appeal. 08-The same stands dismissed and the order passed by the adjudicating authority as well as the appellant authority are affirmed. Certified copy as per rules. - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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