TaxTMI 
TaxTMI 
2011 (3) TMI 1264
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....he Additional Commissioner, Central Excise, Pune by his order dated 30-9-2009 had confirmed the demand of Rs. 24,49,475/- along with interest and equal amount of penalty. 3. The appellants are engaged in the manufacture of excisable goods classifiable under Chapter 84 of the first schedule to the Central Excise Tariff Act, 1985 and are availing the benefit of CENVAT credit of duty/service tax paid on inputs service and capital goods in terms of Cenvat Credit Rules, 2004. It is the case of the department that on scrutiny of the assessee's records, it was revealed that the appellants had availed credit of service tax on outward freight services, which they were not entitled to and, therefore, a show-cause notice dated 9-9-2008 in relati....
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.... reported in 2007 (208) E.L.T. 321 (S.C.) = 2008 (11) S.T.R. 430 (S.C.). In any case, according to the Ld. Advocate, in view of conflicting decisions available at the relevant time, no fault can be found for availing credit by the appellants and, therefore, drew our attention to the Tribunal's decision in the case of Bright Brothers Ltd. v. C.C.E, Mumbai-III, reported in 2004 (61) RLT 679-CESTAT referring to the definition of the "input service" as was prevailing at the relevant time as well as, which was amended subsequently. The Ld. Advocate submitted that the freight charges from the place of removal to the door step of the consumer would be classifiable as input service for the purpose of availing the Cenvat Credit in this regard. 5.&e....
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.... as rightly pointed out by the Ld. Advocate for the appellants, that the Tribunal has considered the same after taking into consideration the decision of the Punjab &, Haryana High Court in Ambuja Cement Ltd., and has clearly held that : "Hon'ble Punjab & Haryana High Court in case of Ambuja Cements Ltd. v. Union of India reported in 2009 (14) S.T.R. 3 (P & H) = 2009 (236) E.L.T. 431 (P & H) = 2009 (TIOL) 110-HC-P&H-S.T., relying upon the above-mentioned circular of the Board has held that the service of transportation of goods up to the customer's door step in case of FOR destination sales, where the entire cost of freight is paid and borne by the manufacturer would be "input service" within the meaning of this term as defined in Rule 2(l....
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....above observation are essentially for the disposal of the stay application only. 8. As regards the contention that circular cannot be applied retrospectively, reliance has been placed in this regard upon the decision in the case of Suchitra Components. It can be hardly be disputed that the circular cannot be applied retrospectively, more particularly, when such circulars explain any provisions of law and if the explanation is accepted true and correct, would invite burden upon the assessee retrospectively but the said proposition is of no relevancy in the facts of this case. The demand is not confirmed essentially on the basis of the new circular but the demand is the statutory liability. Circulars merely explain the statutory provisi....