2015 (11) TMI 708

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....Central Excise, Mumbai Zone I, wherein Ld. Commissioner upholding the demand of Cenvat credit, rejected the appeals of the appellant. 2. The issue involved in all the appeals is admissibility of Cenvat Credit in respect on GTA service i.e. transportation of empty container from container yard to the factory of the appellant and thereafter transportation of container from the factory to the port. Show cause notices were issued proposing denial of the Cenvat Credit on the ground that outward transportation is covered by the definition of terms input services which are allowed only up to place of removal of final product. In the present case outward transportation beyond the place of removal i.e. factory gate is not covered under the defi....

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....y be decided only on merit which was raised in the show cause notice. 4. Shri. H.M. Dixit, Ld. Asstt. Commissioner (A.R.) reiterates the findings of the impugned order. He further submits that the appellant have taken Cenvat Credit in respect of GTA for clearance of their goods in the container from the factory to port of export, which is covered under outward transportation and as per the definition, the outward transportation credit is allowed only for transportation upto the place of removal. In the present case place of removal is the factory therefore transportation service from factory to port of export is not admissible being not covered under the definition of input service. 5. I have carefully considered the submissions made ....

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....e issue has been settled by the Tribunal in the case of Nitin Spinners Ltd. (Supra) holding that Service Tax paid on freight for empty containers called for export of the goods is admissible. Therefore, in view of the above decision the appellant is also entitled for availment of Cenvat Credit in respect of freight charges paid by the appellant for bringing in the empty containers. As regard paying the transportation of goods in containers form the factory to the port of export, these charges are in relation to the transport of export goods. Notification No. 18/2009-ST dated 7/7/2009, exempted the taxable service received by an exporter in respect of the transport of goods from place of removal to port of export. Since the tax is exempted o....