2016 (9) TMI 242

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....i Khiwani. They have, inter alia submitted as follows. (i) Sale involved is depot sale except in a very few cases where delivery is on FOR basis from factory itself. (ii) The definition of input service in Rule 2(l) (ii) of CCR (Cenvat Credit Rules), 2004 includes the services of outward transportation from the place of removal. (iii) In support appellant relies upon following case laws: (a) M/s Gujarat Ambuja Cement Ltd. Vs. CCE, Ludhiana 2007 (6) STR 249 (Tri.-Del.) (b) M/s Ultratech Cements Ltd. Vs. CCE, Bhavnagar 2007 (6) STR 364 (Tri.) (iv) With effect from 1.4.2008 wordings from the place of removal has been changed to up to the place  of removal in definition of input service....

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....clear that the place of removal as defined in Central Excise Act itself recognizes depot also and if sales takes place from a depot, then it should be treated as the place of removal of the excisable goods. (iv) There is no dispute to the fact that majority of the sales of the appellant takes place from Depot and the cost of transportation from the factory to the Depot is borne and also included in the part of assessable value on which Central Excise duty is paid by the appellant. The assessable value determined by including the transportation up to the place of removal, that is, the depot in this case, is as per the relevant provisions of valuation and Section 4 of the Act. In such cases, the credit of service tax paid on outward ....

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....ation was rightly been denied. 6.1 From the facts on record and the submissions of both the sides, I have arrived to the considered view that for the present appellant sale of the goods took place from Depot only except in a few cases where delivery has been taken by the buyer from the factory itself and where issue of claiming Cenvat credit on outward freight has not arisen. When the ownership of the goods was passed over to the buyer only after the sale had been made and it is over / completed at the depot ; then the place of removal in terms of definition of input service given in Rule 2(l) of CCR, 2004 would be depot of the appellant only. The Revenue has failed to provide any evidence to disprove the submission of the appellant that....