2015 (8) TMI 1180

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....he case are that the appellants were issued a Show Cause Notice dated 13.10.2009 stating that they were not eligible for the CENVAT credit of service tax of Rs. 8,14,658/- paid on the freight for the outward transportation of goods beyond the place of removal for the period April 2007 to September 2009. Appellants vide their reply to notice dated 2.11.2009 stated that the SCN is time-barred and further they submitted that all their dispatches are on FOR destination basis, and the sale takes place at the place of the customer when the title to the goods passes on delivery. The price charged is inclusive of the freight and they are responsible for any loss or damage until it is delivered at the customers door steps. They have placed reliance ....

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....rther, he relied on Circular No. 988/12/2014-CX dated 20.10.2014 5. The learned AR for Revenue reiterated the findings of both the lower authorities and submits that the goods have been cleared from the depot to the place of destination and the Board s Circular is not applicable to the facts of the present case. He also relied on the decision of the Hon'ble High Court of Calcutta in the case of CCE Vs. Vesuvious India Ltd. 2014 (34) STR 26 (Cal.). 6. I have heard both sides and perused the records.  I find that  the Hon'ble High Court of Madras in the cases of CCE, Chennai Vs. M/s. Borg Warner Morse TEC Murugappa Pvt. Ltd. (supra) and M/s.Sundaram Industries Ltd. Vs. CCE (supra), has relied on the decision of the Hon'ble Karnata....

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....rtion of the definition to which the word means applies has to be construed restrictively as it is exhaustive. However, the portion of the definition to which the word includes applies has to be construed liberally as it is extensive. The exhaustive portion of the definition of 'input service' deals with service used by the manufacturer. Whether directly or indirectly, in or in relation to the manufacture of final products. It also includes clearance of final products from the place of removal. Therefore, services received or rendered by the manufacturer from the place of removal till it reached its destination falls within the definition of input service. What are the services that normally a manufacturer would render to a customer....

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....hrase is used to expand the meaning of the word 'input service'. However, after using the omni-bus phrase, examples are given. It also includes transportation. The words used are (a) inward transportation of inputs or capital goods (b) outward transportation upto the place of removal. While dealing with inward transportation, they have specifically used the words 'inputs' or 'capital goods'. But, while dealing with outward transportation those two words are conspicuously missing. The reason being, after inward transportation of inputs or capital goods into the factory premises, if a final product emerges, the final product has to be transported from the factory premises toll the godown before it is removed for being ....