2016 (7) TMI 1023

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....the respondent for cenvat credit of service tax paid on GTA services for outward transport of finished goods from the factory to the buyer's premises. The revenue denied the credit on conclusion of the proceedings initiated by show cause notice dated 2.5.2014. The order of the Original Authority was set aside by the ld. Commissioner (Appeals) by allowing the respondent's appeal. The ld. Commissioner (Appeals) held that in terms of purchase order 100% payment for the finished goods will be made on receipt of goods; delivery was FOR destination basis and the insurance was also done by the respondent. There is clear evidence that the property of the goods passed on from the respondent to the buyer at buyer's end only. He relied on the various ....

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....very of the goods in the buyer's premises. The impugned order by the Commissioner (Appeals) is legally correct and there is no ground to interfere with the same. 4. Heard both the sides and examined the appeal records. 5. In the impugned order, the Commissioner (Appeals) concluded as below:-  "I find that the Hon'ble High Court of Karnataka has affirmed the decision of the Larger Bench of the Tribunal in the case of ABB Ltd. & Ors. Vs. CCE, Bangalore  2009 (15) STR 23 (Tribunal-LB). In para 32 of the decision, the Hon'ble High Court has also made reference to the above decision of the Hon'ble High Court of Punjab & Haryana in the case of M/s. Ambuja Cement Vs. Union of India reported in 2009 (236) ELT 431 (P&H) . A ....

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....he judgements as discussed, hereinabove, I hold that the CENVAT credit of the service tax paid in respect of outward transportation of the goods up to the customer's premises on F.O.R. basis is available to the appellant. Once there is no demand, question of interest and penalty does not arise." 6. The main thrust in the Revenue's appeal is the finding of the Hon'ble Supreme Court in Ispat Industries Ltd. (supra) regarding 'place of removal'. The Hon'ble Supreme Court was examining the question of valuation of excisable goods with reference to inclusion or otherwise, the freight charges from the factory gate to the buyer's premises. In the said case, admittedly, the goods were sold ex factory. The Revenue intended to include the freight ....