2009 (5) TMI 241

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....us Application No. 60/2009 has been filed under Rule 10 and Rule 23 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 for producing additional grounds. As the point raised in the additional grounds are very relevant, the Misc. application is allowed. 4. The appellants are manufacturers of Edible Preparation & Aerated Waters which are excisable. They cleared the goods on payment of duty by availing Cenvat credit. Further in terms of sub-clause (v) of clause (d) of sub-rule (1) of Rule 2 of Service Tax Rules, 1994 read with Notification No. 35/2004-ST., dated 3-12-2004, they were paying service tax on transportation charges paid to the transporters. They availed input credit on such service tax paid. The Rev....

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....tured by them to their customer's place. They had also paid service tax on the said transportation. This is not in doubt. The said transportation service has been used directly or indirectly in or in relation to manufacture and clearance of final products from the place of removal. He further; relied on the order of the Commissioner of Central Excise, Indore in the case of NHK Spring India Ltd. [2006 (4) S.T.R. 618 (Comm. Appl.) = 2006 (204) E.L.T. 189 (Comm. Appl.)] in favour of the party. (iii) Further, in the Miscellaneous application and also during the course of hearing, our attention was invited to Para 8.2 of the Board's Circular No. 97/8/2007 dated 23-8-2007, which is reproduced herein below:- "8.2 In this connection, the phra....

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.... 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 freight charges were an integral part of the price of goods. In such cases, the credit of the service tax paid on the transportation up to such place of sale would be admissible if ....