9911796707
TMI Blog2024 (7) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... as availed accumulated credit upto December 2014 in January 2015 on invoices issued prior to 1.9.2014. The appellant has availed the credit within 6 months from the date of introduction of time limit in terms of Rule 4 (7) of CCR 2004. The said rule cannot be applied retrospectively. However, this issue is to be reconsidered by the original authority. Credit eligible on outward transportation of goods upto buyer's premises - HELD THAT:- The said issue has been considered by the Larger Bench of the Tribunal in M/S. THE RAMCO CEMENTS LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, PUDUCHERRY [ 2023 (12) TMI 1332 - CESTAT CHENNAI-LB] . The Larger Bench has held that in each case the place of removal has to be ascertained on the basis of doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri R. Parthasarathy , Consultant for the Appellant Shri C. Dhanasekaran , Special Counsel for the Respondent ORDER Per : Ms. Sulekha Beevi. C.S Brief facts are that the appellant is engaged in manufacture of OPC PPC Cement and Cement Clinkers. They are registered with the Central Excise Department. Appellant availed cenvat credit on inputs / capital goods / input services and utilized the same for payment of excise duty on clearances of the finished products. 2. On verification of the records relating to input service credit availed by the appellant, it was noted that the appellant has taken cenvat credit of service tax paid in respect of GTA service used for the outward transportation of excisable goods beyond the place of removal (factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t place of removal has to be ascertained on the basis of which, the assessee would be eligible to avail credit of service tax paid on outward transportation of goods. In such circumstances, if the freight element is included in the assessable value, the appellant would be eligible to avail credit. In the present case, as the finished products are cement, they had fixed price for certain period and also fixed price plus VAT rate for some period. The appellant has always included the freight charges in the price of the finished products for payment of excise duty. For this reason itself, the appellant is eligible for credit. The invoice, purchase order, agreement etc. were furnished by the appellant before the authorities to submit that freig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that the appellant is not eligible for credit on inputs / capital goods and also input services. After verification of accounts by the Audit Officers, it was noted that the appellant had constructed a new project viz., Line-II Project through contractors who undertook the work of Erection, Commissioning and Installation as a turnkey project using various items purchased for the period from November 2009 to April 2011. The department took the view that these items were assembled and embedded to earth making them immovable and therefore the appellant cannot avail credit as inputs / capital goods. The said SCN culminated in confirming the demand against which the appellant preferred appeal before the Tribunal. The Tribunal vide Final Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e allegation of the Department that the appellant had availed credit from 2010-11 to 2014 under a single entry with an intent to wrongly utilize the credit towards payment of Central Excise duty is factually incorrect. 2.6 The issue of credit on outward transportation of goods was considered by the Hon'ble Apex court in the case of CCE Vs Ultra Tech Cement Ltd. (supra) wherein it was held that the credit is available only upto the place of removal. Later, the Board had issued a clarification vide Circular in the year 2018 explaining that if the price includes the freight charges and the agreement is to deliver the goods at the buyer's premises (FOR Destination), the credit of service tax paid on freight charges for transportation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The appellant has availed the credit within 6 months from the date of introduction of time limit in terms of Rule 4 (7) of CCR 2004. The said rule cannot be applied retrospectively. However, this issue is to be reconsidered by the original authority. 6. The second issue is with regard to credit eligible on outward transportation of goods upto buyer's premises. 7. The said issue has been considered by the Larger Bench of the Tribunal vide Interim Order No.40020/2023 dt. 29.12.2023. The Larger Bench has held that in each case the place of removal has to be ascertained on the basis of documents and if the place of removal is the buyer's premises, the assessee would be eligible for credit. It is also held that the place of removal has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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