9911796707
TMI Blog2008 (9) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... interest thereon and penalty of Rs. 10,000 imposed on them under rule 15(3) of CENVAT Credit Rules, 2004. After hearing both sides on the subject application, the appeal proper is taken up for final disposal. 2. The facts of the case are that during the period 1-1-2005 to 30-11-2006 the appellants paid service tax under GTA services for outward transportation of their final products (telephone cords, PVC compound, PVC tubes, etc.) from the factory gate to the buyer's premises. The original authority found that service tax paid on freight for outward transportation of final products of the assessee from the place of removal was not covered by the definition of "input service". He held that credit taken by the appellants of service tax paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined the order of the original authority following the ratio of the Tribunal in Gujarat Ambuja Cements Ltd v. CCE 2007 (212) ELT 410/8 STT 122 (Delhi - CESTAT). In the said case, the Tribunal had held that goods transport service credit could not go beyond the place of removal. In the India Japan Lighting (P.) Ltd v. CCE [2007] 11 STT 498 (Chennai - CESTAT) the same ratio was followed. Though the Commissioner (Appeals) referred to the Board's Circular No. 97/8/2007, dated 23-8-2007, he does not go into its contents or its implication in the case on hand. The appellants have sought to derive support from the above Circular in their attempt to seek relief from the liabilities as per the orders of the original authority. 6. I find that the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid warehouse, or from a duty paid depot (from where the excisable goods are sold, after their clearance from the factory), the determination of the 'place of removal' does not pose much problem. However, there may be situations where the manufacturer/consignor may claim that the sale has taken place at the destination point because in terms of the sale contract/agreement (i) the ownership of goods and the property in the goods remained with the seller of the goods 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 Service Tax Today freight charges were an integral part of the price of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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