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of <h1>Appellant entitled to input credit on ocean freight under reverse charge mechanism. Point of taxation is date of payment.</h1> <h3>M/s. Huhtamaki India Ltd. Versus Commissioner of CGST & Central Excise, Dehradun</h3> M/s. Huhtamaki India Ltd. Versus Commissioner of CGST & Central Excise, Dehradun - 2022 (61) G.S.T.L. 52 (Tri. - Del.) Issues involved:1. Wrongly availed Cenvat Credits on various items.2. Applicability of Rule 8B of Point of Taxation Rules, 2011 or Rule 7 thereof to the case.Detailed Analysis:1. The appellants were engaged in manufacturing packing material and availing Cenvat Credit on inputs, capital goods, and input services. After an audit, it was found that they had wrongly taken Cenvat Credits on detention charges, invoices lacking required particulars, input services under reverse charge mechanism, documents issued beyond one year, and ocean freight. A show-cause notice was issued for recovery of the amount. The Order-in-Original confirmed part of the demand, leading to the appeal. The main issue was the availed Cenvat Credit on ocean freight.2. The appellant argued that the demand was based on the wrong point of taxation rule, Rule 8B, instead of Rule 7. They contended that service tax on ocean freight was paid in June 2017, while the demand made them liable from April 2017. The appellant sought to set aside the Commissioner (Appeals) order and allow the appeal. The Department justified the order, emphasizing the application of Rule 8 and sought dismissal of the appeal.3. The Tribunal considered the admitted facts that the appellant was liable to pay service tax on ocean freight under reverse charge mechanism, and the service tax payment for the invoices in question was made on June 30, 2017. Rule 7, applicable to recipients of service under reverse charge, mandated the point of taxation as the date of payment. As the payment for the invoices was made on June 30, 2017, the Tribunal held that the appellant had rightly availed the input credit. Consequently, the demand confirmation by the Commissioner (Appeals) was set aside, and the appeal was allowed.
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