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TMI Blog2024 (9) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court in the case of COMMISSIONER OF CENTRAL EXCISE, BELGAUM VERSUS M/S. VASAVADATTA CEMENTS LTD. [ 2018 (3) TMI 993 - SUPREME COURT] , it is found that cenvat credit of service tax paid on insurance premium associated with outward transportation of final product from factory gate to depot for the period upto 01.03.2008 is admissible. Thus, out of the cenvat credit of Rs.31,60,453/-, appellant is entitled to avail cenvat credit which was service tax paid on such insurance premium upto 01.03.2008. Cenvat credit of service tax paid on transportation for pickup and drop facility for employees - HELD THAT:- It is observed that Hon ble Karnataka High Court has in both the cases, relied upon by learned counsel for the appellant, such as COMMIS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able goods such as motor vehicles falling under Chapter 87 of Central Excise Tariff Act, 1985 and was also availing the facility of cenvat credit. During the period from April 2005 to August 2009, appellant was issued with three show cause notices wherein there was a proposal for denial of cenvat credit of Rs.31,60,453/- availed by the appellant on service tax paid on insurance premium obtained for outbound movement of final products. Out of the said cenvat credit, cenvat credit of Rs.25,78,094/- pertained to the period from 2005-06 to 2007- 08. For the period 2007-08 to March 2011, four show cause notices were issued to the appellant proposing to totally deny cenvat credit of Rs.10,63,186/- which was availed on service tax paid on transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal product and availed cenvat credit of service tax paid on such insurance premium. He has submitted that for the period upto 1st March 2008 cenvat credit facility was available for outward transportation of goods and, therefore, service tax paid on associated insurance should also be available to the appellant. He has relied on ruling by Hon ble Supreme Court in the case of Commissioner of Central Excise, Belgaum vs. Vasavadatta Cements Ltd. reported at 2018 (11) GSTL 3 (SC) and submitted that Hon ble Supreme Court has held that upto 01.03.2008 the term from the place of removal was not substituted by the term upto the place of removal in Rule 2(l) of Cenvat Credit Rules, 2004 and that cenvat credit on GTA services availed on outward tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial colony of employees, he has submitted that Hon ble Andhra Pradesh High Court in the case of Commissioner of Customs Central Excise, Hyderabad-III vs. ITC Ltd. reported at 2013 (32) STR 288 (AP) has held that such type of cenvat credit is admissible to the manufacturer. 4. Heard the learned AR. Learned AR has submitted that cenvat credit of service tax paid on outbound transit insurance is not admissible to the appellant and they have relied on the ruling by Hon ble Supreme Court in the case of Commissioner of Customs Central Excise, Nagpur vs. Ispat Industries Ltd. reported at 2015 (324) ELT 670 (SC) and on Commissioner of Central Excise Service Tax vs. Ultra Tech Cement Ltd. reported at 2018 (9) GSTL 337 (SC) and this Tribunal s decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the case of Ispat Industries Ltd. (supra) is dealing with the provisions of Section 4 of Central Excise Act, 1944 and is not dealing with admissibility of cenvat credit. Therefore, I do not find the said ruling squarely applicable in the present case. Further I find that Revenue has relied on the ruling by Hon ble Supreme Court in the case of Ultra Tech Cement Ltd. (supra) where I find that Hon ble Supreme Court has relied on Hon ble Supreme Court s ruling in the case of Commissioner of Central Excise, Belgaum vs. Vasavadatta Cements Ltd. which has been relied upon by learned counsel for the appellant. On going through the ruling by Hon ble Supreme Court in the case of Vasavadatta Cements Ltd. (supra), I find that cenvat credit of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ium paid on outward transportation of final product and they are also not admissible to avail cenvat credit of Rs.20,73,220/- of service tax paid on hospitality and management services received at the residential colony of the employees. However, I direct the appellant to pay interest on the inadmissible cenvat credit availed by them, but set aside the penalties imposed through the impugned order for the reason that the issues were related to interpretation of statute for which penalties are not to be imposed. I allow cenvat credit of Rs.10,63,186/- of service tax paid on bus transportation, as discussed earlier. I direct the appellant to approach the jurisdictional Assistant Commissioner for quantification of admissible cenvat credit on tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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