TaxTMI 
TaxTMI 
2011 (12) TMI 445
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....ing to learned Counsel it was held in first appeal that "Cenvat credit in respect of GTA service for transport from depot to buyer's premises not admissible" while in clause (i) of Para 13 of the impugned order it has been held that Cenvat credit on GTA service for transportation from factory to buyer's premises is admissible. 2. According to Appellant when Cenvat credit of Service Tax paid on GTA service availed from factory to buyer's premises is allowed, there is no good reason to disallow Cenvat credit of service tax paid on transportation from depot to buyer's premises since depot is also place of removal and delivery is F.O.R. Incurrence of transport cost and levy of service tax thereon is not at all in dispute. But learned Co....
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.... any other place on premises wherein the excisable goods have been permitted to be deposited without payment of duty; (iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory; from where such goods are removed;" 5. Relying on the statutory definition of the term "place of removal" learned D.R. submitted that if removal of excisable goods is done at the depot apart from factory or a recognized warehouse the transport cost incurred till that place deserve consideration for allowing Cenvat credit in respect of service tax paid on transportation. When the goods are delivered at buyer's premises, service tax paid on....
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....ppellate order that Cenvat credit on GTA service for transportation from factory to buyer's premises is held to be admissible. But, why transportation from depot to buyer's premises is not admissible is not reasoned. "Depot" may be beyond factory location from where clearance of goods is also made and goods may be delivered on F.O.R. basis. 8. Finance Act, 1994 taxes economic activities. Transportation is one such activity which is brought to the ambit of service tax. According to scheme of law, service tax paid availing taxable service confers right to avoid cascading effect by set off of tax so paid against tax liability arising under various legislation envisaged by Cenvat Credit Rules, 2004. The right so exercisable is subject t....