2015 (10) TMI 2521

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.... as such, the appellant is not entitled to take Cenvat Credit on the service tax paid on transport charges for transportation of cement from the factory to the premises of the buyers. 2.  The brief facts are that the appellant is engaged in manufacture of cement. The appellant have been taking Cenvat credit on various inputs, capital goods and input services. 12 periodical show cause notices were issued for the period November 2010 to October 2011 as it appeared to revenue that the appellant is not entitled to take Cenvat credit on outward freight for transportation of the finished goods from the factory to the premises of the dealer/customer totalling to Rs. 48,80,335/-. 3.  The appellant appeared and contested the show cau....

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....rvice" in 2008 and 2011 for the words "from the place of removal" with the words "up to the place of removal" were substituted. 4.  Being aggrieved the appellant preferred appeal before the Commissioner (Appeals) who vide the impugned order rejected the appeal holding that the definition of "place of removal" under section 4 (2) (iii), applies to those premises from where the goods are to be sold after their clearance from the factory. However, in the facts of this case, the customer's premises is the ultimate destination of the goods and not to be sold further from there. Hence the customer's premises is not covered under clause (iii) of section 4 (3) (c) of the Act. The appellant had also produced the certificate of chartered acco....

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....alue of freight for the delivery to the customers' premises, the "place of removal" would not be at the "factory gate" but  at the customer's premises. The Id. Counsel further stats that it has been certified by the Chartered Accountant that since the cement is sold on FOR-destination basis and therefore, the appellant  have legitimately claimed Cenvat credit on the service tax paid on the freight charges for delivery from the factory gate to the place of the buyer. The said certificate have not been found wrong and have been erroneously ignored by the Commissioner (Appeals). Reliance is also placed on the ruling of Punjab & Haryana High Court in the case of Ambuja Cement Ltd. Vs. Union of India : 2009 (236) ELT 431 (P & H) wherei....