2014 (1) TMI 1424

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f service tax credit including education cess aggregating to a sum of Rs.10,39,061/- for the period during January, 2005 to December, 2007 was confirmed and a penalty of Rs.10,000/- was imposed. The learned Tribunal set aside the order following the decision in the case of Commissioner of C.Ex & S.T.,LTU, Bangalore vs. ABB Limited, reported in 2011 (23) STR 97 (Kar.). Aggrieved by the order of the Tribunal, the Revenue has come up in appeal. Mr. Roy Chowdhury, learned Senior Advocate, appearing in support of the appeal, submitted that the judgment of the Karnataka High Court did not decide the issue correctly, and therefore, the learned Tribunal should not have followed the same. He drew our attention to the definition of 'input servi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Sale of Goods Act, 1930) occurred at the said place. He drew our attention to the reply to the show cause given by the respondent-assessee. No where did the assessee in its reply disclose the facts and circumstances to bring its case within the four corners of the relaxation made by the circular. He, therefore, contended that the judgment under challenge cannot be supported and should, therefore, be set aside. Views taken by the Karnataka High Court do not appear acceptable for the following reasons:    a) "Be that as it may, we are of the opinion that the outward transport service used by the manufacturers for transportation of finished goods from the place of removal upto the premises of the purchaser is covered within....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....; c) Yet another reasoning given by the Hon'ble Division Bench is as follows :        "Therefore, it is clear that till such amendment made effective from 1-4-2008 notwithstanding the clarification issued by the Central Government by way of their circular, transportation charges incurred by the manufacturer for 'clearance of final products from the place of removal' was included in the definition of input service." By the amendment made with effect from 1st April, 2008 substituting the word "from" by the word "upto" all that has been done is to clarify the issue. Neither the services rendered to the customer for the purpose of delivering the goods at the destination was covered by the definition of input ....