https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=756235 https://www.taxtmi.com/caselaws?id=756235 CENVAT Credit - transportation of goods from their factory to the buyer s premises as well as to their own units which were further used in the manufacture - Disallowance of credit of service tax paid on freight charges incurred by appellant up to the buyer s premises. CENVAT Credit - transportation of goods from their factory to the buyer s premises as well as to their own units which were further used in the manufacture - Department was of the view that the transportation was beyond the place of removal and therefore, the appellant is not eligible for Cenvat credit of the service tax paid on such freight charges incurred for transportation - periods from July 2011 to November 2011, December 2011 to March 2012, April 2012 to December 2012, January 2013 to September 2013 and October 2013 to September 2014 - HELD THAT:- The very same issue was considered by the Hon ble High Court, Madras in the appellant s own case in [ 2019 (9) TMI 328 - MADRAS HIGH COURT] . As per judgment dated 20.08.2019, the Hon ble High Court categorically held that the appellant is eligible for credit. Following the decision of the Hon ble High Court in the appellant s own case, it is held that the credit availed on service tax paid for freight charges incurred for transportation of goods to the appellant s unit at Jamshedpur and Uttarakhand is eligible. The impugned order disallowing the credit, and confirming the demand, interest and imposing penalties on this issue is set aside. Disallowance of credit of service tax paid on freight charges incurred by appellant up to the buyer s premises - HELD THAT:- The appellant is eligible for credit if the freight charges has been included in the assessable value for payment of central excise duty. The Larger Bench in the case of M/S. THE RAMCO CEMENTS LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, PUDUCHERRY [ 2023 (12) TMI 1332 - CESTAT CHENNAI-LB] , has held that the place of removal has to be ascertained on the basis of the decisions passed by the apex court in the case of COMMISSIONER CENTRAL EXCISE, MUMBAI-III VERSUS M/S. EMCO LTD. [ 2015 (8) TMI 200 - SUPREME COURT ] and COMMISSIONER, CUSTOMS AND CENTRAL EXCISE, AURANGABAD VERSUS M/S ROOFIT INDUSTRIES LTD. [ 2015 (4) TMI 857 - SUPREME COURT ]. The Board s Circular issued in 2018 also clarifies the same. In such circumstances, this issue requires to be remanded to the adjudicating authority, who is directed to ascertain the place of removal. The appellant is to be given personal hearing and is at liberty to furnish documents to establish their contention. In case the appellant has included the freight charges in the assessable value for payment of central excise duty, they would be eligible to avail credit of service tax on such freight charges. The impugned order is modified to the extent of allowing the credit of service tax for outward transportation to the appellant s own unit. The demand, interest and penalties imposed in this regard is set aside - The issue of availment of credit on outward transportation up to the buyer s premises is remanded to the adjudicating authority for fresh consideration. Appeal allowed in part and part matter on remand. Case-Laws Central Excise Tue, 23 Jul 2024 00:00:00 +0530