2016 (8) TMI 193

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....anufacturer of graphite electrodes and nipples and graphite products which are dutiable and the appellants pay the duty regularly and avail the benefit of credit on certain services as input service under Rule 2(l) of the Cenvat Credit Rules 2004. On scrutiny of the records for the period September 2009 to December 2010, it appeared that the appellants have wrongly availed cenvat credit of service tax paid on transportation and freight charges in respect of transportation of finished goods from the factory gate to the consumer premises. On these allegations the show-cause notices were issued denying irregular credit of Rs. 3,92,177/- (Rupees Three Lakhs Ninety Two Thousand One Hundred and Seventy Seven only) and Rs. 2,88,904/- (Rupees Two L....

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.... that freight charges were integral part of the price of the goods delivered at customer s premises. Hence place of removal is the factory gate in this case. In the same para the learned Commissioner has observed as under: "9. Further I find in findings from para 10 to 11.6 of the orders-in-original the original authority has clearly brought out that the assessee has not fulfilled the above condition as there was no documentary proof to the effect that freight charges were an integral part of the price of the goods sold for delivery at the customers premises, the assessee is not eligible to avail credit on service tax paid on outward freight charges from the place of removal and disallowed the claim". 2.1. Further in para 11, th....