TaxTMI 
TaxTMI 
2016 (5) TMI 1068
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.... the facility of cenvat credit on inputs, capital goods and input services and utilizing the same for payment of duty of the said products manufactured and cleared. The appellant was issued a show cause notice No.12/2012-C.Ex. dated 10.04.2012 and SCN No.26/2012 dt. 16.06.2012 (Page Nos 29 to 36 of this appeal paper book) issued on them. In the said notice it was clearly pointed out that the service tax credit of Rs. 1,50,366/- and Rs. 14,658/- availed by them during the period form 2007-2008 to December 2011 in respect of Outward Transportation of final products on the basis that the said services cannot be considered as an input service and it was proposed to recover the said credit under Rule 14 of Cenvat Credit Rules 2004 read with pr....
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....vat Credit Rules 2004. 4. Aggrieved with the above said Order in Original dated 24.01.2013, the appellant preferred an appeal before the Commissioner of Central Excise (Appeals), Chennai. The Commissioner (Appeals) vide his Order in Appeal No. 09/2014 dated 10.11.2014 rejected the appeal preferred by the appellant and upheld the above said Order in Original in respect of the credit availed by the appellant for the period from April2008 to December 2011 for a sum of Rs. 1,62,740/- relying on the judgment of the Hon'ble Supreme Court of India in the case of Maruthi Suzuki Ltd. Vs CCE Delhi (2009 (240) ELT 641 (SC) and the decision of the Honble Tribunal in the case of CCE Chennai Vs Sundaram Brake Linings - (2010 (19) STR 172). 5. Aggr....
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....iable to deliver the goods to the customers premises as per the terms of their contract and hence the sale of impugned goods occurred only at the buyers premises; that since the goods have been sold by them at the customers premises, the place of removal would be the customers premises and thus the freight charges incurred on outward transportation can be considered as an activity indirectly relating to the manufacture of final products; that the physical removal of goods from the place of manufacture to the customers premises would fall within the inclusive part of the definition of input services; that there is no restriction imposed on the rule to the effect that the place of removal is restricted within India and it cannot be made ....
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....of sale would be admissible; that in the instant case, all the conditions stipulated in the Master Circular No. 97/6/2007 dated 23.08.2007 issued by CBEC have been duly complied. 7. The Learned A.R reiterated the findings in the impugned Order-in-Appeal with particular reference to para 6 of the said judgement reading as under: "Consequent to amendment to the definition of "input service", with effect from 01.04.2008, cenvat credit on outward transportation of goods was allowable only when it involved transportation of goods upto the place of removal. Prior to 01.04.2008, the definition of input service allowed credit in respect of transportation from the place of removal. In this case, it is not in dispute that the outward....
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....t to burden the export goods with domestic taxes as has been noted in various decisions of the Tribunal. The reasons are obvious. Generally it is not intended to make domestically produced goods, when exported to the foreign market, to become uncompetitive, by means of increase in cost. No country wants to export the domestic taxes meant to be levied on domestic consumption of goods and services. Countries either exempt such taxes in respect of goods to be exported including taxes relating to inputs used in the export goods, or there are alternative schemes for providing rebate, drawback of duties suffered by export goods. India is no exception as we also have similar schemes. There are also schemes making available duty-free goods and serv....
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....perty in goods (in terms of Section 2 of the Central Excise Act, 1944 and in terms of Sale of Goods Act, 1930 occurred at the customer's premises; that in the instant case, the ownership and the property in goods remained with the appellants till the delivery of the goods at the customer's premises, the risk of loss or damage of the goods during transit is borne by the appellants and the freight charges are integral part of the price of the goods upon which central excise duty has been paid. It is not the case of the revenue that the above conditions are not satisfied in the appellants case. By following the ruling of this Tribunal in the case of Hyundai Motors referred to supra, I hold that the appellants are eligible for credit. The r....