TaxTMI 
TaxTMI 
2015 (9) TMI 1161
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....nd as per the new amended definition of Input Service, Cenvat Credit in respect of services used for removal of goods from place of removal is admissible therefore outward transportation is used for removal of goods from place of removal i.e. factory gate hence credit is admissible. He placed reliance on the judgment of the Larger Bench judgment in the case of ABB Vs. CCE [2009-TIOL-830-CESTAT-BANG-LB] which was upheld by the Hon ble Karnataka High Court reported in [2011-TIOL-395-HC-KAR-ST]. It is his submission that as per the fact of above case, though the freight was not included in the price of the goods, it is not necessary for allowing credit, freight should be integral part of the price. In view of the definition of input service prevalent at relevant time for service used for removal of the goods from place of removal there is no condition stipulated that value of service should be included in the value of the goods, therefore, even though transportation charges was charged separately over and above the price of the goods, since transportation was used for removal of goods from place of rem....
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..... CCE, Hyderabad III. 4.1 Before going into the issue directly, I would like to produce the definition of input services as available under Rule 2(1) of the Rules:- 2(l) "input service" means any service,- (i) used by a provider of 1o [output service] 1o for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal] 1n, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal." 4.2.0 Clause (ii) of Rule 2(1) is relevant in the present issue. According to the above definition "input service" means any ser....
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....clearance of the final products or whether the clearance of the final products would have been facile in the absence of the service. Outward transportation of final products from the place of removal, being an activity posterior to the clearance of the goods, in the present case, cannot pass the test." 4.2.2 The Tribunal has further held vide para 8.5 that "Had the 'place of removal' of final products been other than factory for purposes of Section 4 of the Central Excise Act, 1944, the transportation of the goods out of the factory upto the place of removal would have qualified to be "input service' under Rule 2(1) (ii) for, in such a situation, transportation is anterior to clearance from the place of removal and passes the test. The clearance of final products from the place of removal (depot/warehouse) would not have been possible without their transportation upto such place from the factory. In other words, the transportation aids the clearance of the goods from the place of removal and can be said to have been used, directly or indirectly, in relation to used clearance." 4.2.3 Finally with the above observation, the Hon'ble CESTAT concluded vide para 8 t....
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....ports which were made from one place of removal to another place of removal. 14. We are, as such, of the considered view that the judgment rendered by the learned Tribunal cannot be sustained and the same is, therefore, set aside. India Japan Lighting Private Ltd vs. CCE The Appellate Tribunal in its impugned order had held that clearance of final products from place of removal does not include outward transportation of goods to customers' premises. Such transportation starts from where clearance ends and cannot be held to be a service used directly or indirectly in the clearance of final products from place of removal. Outward transportation of final products from place of removal, being activity posterior to clearance of goods, cannot be said to be used directly or indirectly in relation to clearance of final products from place of removal. Lafarge India Ltd. vs. CCE CONCLUSIONS 30. Our conclusions are as follows: (a) In case of sale at the place of destination, an assessee is only entitled to claim cenvat credit on service tax paid for the Goods Transportation Agency service provided amount paid was integral part of the price of the" goods; (b) In this....