TaxTMI 
TaxTMI 
2007 (3) TMI 1
X X X X Extracts X X X X
X X X X Extracts X X X X
....fit. 2.The dispute in the present appeal is in regard to service tax paid on the freight incurred on the transportation of cement sold by the appellant. The sale is on FOR destination basis and freight is paid by the appellant. The appellant also pays the service tax in regard to the said freight. It claimed input service credit in respect of the service tax so paid. That claim was rejected by the Central Excise. The present appeal is directed against the order of Commissioner of Central Excise rejecting the claim for Cenvat credit. 3.There is no dispute that service tax paid on transport (GTA) is an eligible input credit; but the revenue authorities have taken the view that service tax credit is available only in respect of inward tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the manufacturer in relation to clearance of final products from the place of removal" is eligible for input service credit. The contention is that transportation of goods from the place of removal to the buyers premises remains covered by the expression "Clearance from the place of removal" and thus, credit is specifically provided for in respect of service tax paid on transport to buyers. It is also being contended that the mention of 'outward transportation upto the place of removal' in inclusion clause of the definition does not have any effect on the claim of the appellant as its claim is in terms of the main definition. 7.The learned Counsel would also argue that an inclusion clause cannot restrict the scope of the main definitio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....settled by these decisions of the Tribunal and the appeal is required to be rejected. 10.In regard to the principle governing the interpretation of a main definition and its attendant inclusion clause, the learned SDR pointed out that it is well settled that inclusions clause casts its shadhow on the main definition also and this warranted the joint consideration of the main definition and its inclusion clause. Reliance in this regard is placed on the judgment of the Supreme Court in the case of Reserve Bank of India v. Peerless Co. reported in (1987) 1 SCC. Reference in particular is to Paras 33 and 34 of the judgment, which are extracted below : - 33.Interpretation must depend on the text and the context. They are the bases of inter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rt the two common and basic features of prize chits by whatever name known were identified as the giving of prizes to the lucky ones and the refunding of subscription to everyone. These prize chits by whatever name known were recommended to be banned. It was this recommendation that was accepted by the Parliament in enacting the Prize Chits and Money Circulation Schemes (Banning) Act. If this much is borne in mind it becomes evident that the two requirements mentioned in the two clauses (i) and (ii) of the definition are not to be read disjunctively ; they are two distinct attributes of 'Prize Chits', each of which has to be satisfied. It is important to notice there that the Conventional Chit satisfies both the requirements of the definiti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e following purposes" indicates that the purpose may be either the one mentioned in (i) or the one mentioned in (ii). We do not agree with this submission. Each of the clauses (i) and (ii) contains a number of alternatives and it is to those several alternatives that the expression "all or any of the following purposes" refers and not to (i) or (ii) which are not alternatives at all. In fact, a Prize Chit, by whatever name it may be called, does not contemplate the exhaustion of the entire fund by the giving of prizes; it invariably provides for a refund of the amount of subscription, less the deductions, to all the subscribers or to those who have not won prizes, depending on the nature of the scheme. Clauses (i) and (ii) refer to the twin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....duced in Para 5). The main clause in the definition states that the service in regard to which credit of tax is sought, should be used in or in relation to clearance of the final products from the place of removal." The learned SDR has brought to our notice the decisions of this Tribunal to the effect that transport does not come within the scope of clearance or forwarding. Further, that transportation (freight) is an entirely different activity from manufacture remains settled by the judgments of Hon'ble Supreme Court in the cases of Bombay Tyre International - 1983 (14) E.L.T. 1896 (S.C.), Indian Oxygen Ltd., 1988 (36) E.L.T. 723 (S.C.) and Baroda Electric Meters, 1997 (94) E.L.T. 13 (S.C.) 14.The interpretation convassed by the appell....