TaxTMI 
TaxTMI 
2016 (6) TMI 468
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.... by the Adjudicating authority by denying CENVAT Credit on certain services alongwith interest and an equivalent amount of penalty has also been imposed under CENVAT Credit Rules, 2004. 2. Shri B.L. Narasimhan (Advocate) and Shri Karan Sachdev (Advocate) appeared on behalf of the appellant. It was argued by Shri B.L. Narasimhan that the entire emphasis of the Adjudicating authority is only on one point that since duty is paid at the time of clearance of the goods, therefore, the same will be the place of removal under Section 4 of the Central Excise Act, 1944. That appellant is the manufacturer of ready made garments and are paying duty under Section 4A of the Central Excise Act, 1944 on MRP basis. That the entire quantity of the finishe....
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....t was taken and the case laws under which these credits have been held eligible. Learned Advocate relied upon,inter alia, the following case laws: (i) L.G. Electronics (India) Pvt. Ltd. Vs. Commissioner of Central Excise, Noida [2010 (19) STR 340 (Tri.-Del)] (ii) Ultratech Cement Ltd. Vs. Commissioner of Central Excise, Raipur [2014 (307) ELT 3 (Chattisgarh)] (iii) Metro Shoes Pvt. Ltd. Vs. Commissioner of Central Excise, Mumbai-I [2008 (10) STR 382 (Tri-Mumbai] 3. Shri Rajeev Ranjan, Joint Commissioner (A.R.), on the other hand argued that the place of removal is the factory gate as the duty is paid at the time of clearance from factory. That the services availed at the retail shops of the appellants are beyond the place of rem....
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.... to be sold, after their clearance from the factory, can also be the place of removal. In the instant case, no sales are effected from the factory gate. Central Excise duty in all cases has to be paid at the time of clearance from the factory but it does not mean that place of removal in all cases should be the factory gate by virtue of definition given in Section 4 (3) (c) of the Central Excise act, 1944. In the existing factual matrix in the case of the appellant since the goods are not sold at the factory gate but are sold at the retail outlets, therefore, by virtue of the express provisions of Section 4 (3) (c) (iii) of the Central Excise Act, 1944 the place of removal in the case of appellant will be the retail outlets from where goods....
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....in reading of the second part of the definition, we find that any input service used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final product and clearance of final product from the place of removal, stands eligible for availing as credit. It is undisputed, in this case, that the appellant had manufactured shoes in their factory premises and cleared the same to their own showrooms situated at various places. It is also undisputed that the sale of said shoes take place from the said showrooms only and did not take place from the factory premises. If that be so, it has to be accepted that the show rooms which are belonging to the appellant herein, have to be considered as place of removal. The ....