2016 (8) TMI 352

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.... case are that the appellants are engaged in the manufacture of pig iron and rolled steel bars and rods of alloy and non-alloy steel falling under Chapter heading 7201.00, 7214.00 and 7228.00. The appellants have been discharging their service tax liability of freight paid for inward and outward transportation of goods under the category of goods transport agency services. During November 2005, the department visited the factory of the assessee for audit of their books and records and after verification of the record, the department found that the appellants are not eligible for the CENVAT credit of service tax paid on outward freight and thereafter a show-cause notice was issued to the appellant. The appellant contested the allegation in t....

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....itted that the demand of CENVAT credit of Rs. 2,72,069 distributed by the ISD is beyond the show-cause notice and therefore not sustainable. He also submitted that the transportation of the goods from the factory for delivery at the customers premises would come within the definition of input service under the CENVAT Credit Rules 2004 as the definition of input service is an inclusive definition covering inward transportation of input or capital goods and outward transportation from the place of removal and that transportation of goods from the factory gate to customers premises would be rightly covered by the term input services . In support of his submissions he relied upon the following judgements; i. Madras Cements Ltd Vs ACCE, Banga....