2011 (11) TMI 251

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.... Mr.B.S.V. Murthy: Revenue is in appeal against the decision in the impugned order holding that the CENVAT Credit of Rs.4,01,981/- (Rupees Four Lakhs, One Thousand, Nine Hundred and Eighty One only) for Service Tax paid on transportation services utilized for transportation of Press Mud and Ash, which arise as a byproduct, by the respondent to the fields of farmers during the period January 200....

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....er (Appeals) that the Press Mud and Ash have not been sold to the farmers on the ground that there is no evidence for this conclusion. 5. I have considered the submissions made by the ld.Authorised Representative for the Department. 6. For coming to the conclusion that the CENVAT Credit is admissible, the observations of the Commissioner are as under: "2. The impugned order dt.2.4.09 has ....

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....sportation of such waste products to a place outside the factory. Primary issue (point) for determination is whether the Service Tax paid on outward transportation of waste products arising in the manufacture of final dutiable products (viz. sugar and molasses) can be treated as input service. The issue is primarily a question of law involving interpretation of the term input services as defined u....

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....ment ultimately gets reflected in the sale price of final (dutiable) goods. Such outward transportation of waste products is, prima facie, input service (albeit indirectly) in relation to manufacture of final goods. However, situation would have been different where the assessee sells such waste for a price but then there is no such claim that waste is sold." 7. Disposal of Press Mud and Ash, a....