TaxTMI 
TaxTMI 
2016 (11) TMI 1178
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.... chassis, cars and parts thereof and are having factories at different places in the state of Maharashtra, Uttar Pradesh, Karnataka, Jharkand, Uttarakhand and Gujarat. The appellant also sells spare parts throughout the country. The present issue relates to the spare part division of Bangalore unit. The appellant procured various spare parts from approved vendors or received them from the appellant s works/other SPDs. In both the cases, the vendors are paying excise duty and the appellants are availing CENVAT credit of duty paid by the vendors. Appellant also import various spare parts and are availing CENVAT credit of duty paid of CVD paid on the same. Appellant sells spare parts on door delivery basis with freight to be billed to the appe....
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....l for the appellants submitted that Cenvat credit on outward transportation has been rightly availed by the appellants in terms of Board s Circular No. 97/8/2007-S.T. dated 23.8.2007 vide which the following three conditions have to be fulfilled : (i) The supplies made by the appellants to the customers is on FOR destination basis and ownership of goods remain with them till it safely reaches the customer s doorstep (Refers Internal Circular dated 10.4.2011); (ii) The appellants have an open insurance policy with the Tata AIG General Insurance Company Ltd. where it is clearly mentioned that the coverage of all risks is from appellant s premises to the customer s premises; and (iii) The price terms with the customer is on MRP value mi....
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.... the appellants and the supplies are on FOR destination basis and supply would be door delivery. He also submitted that the expression activities relating to business under Rule 2(l) of Cenvat Credit Rules, 2004 admittedly covers transportation upto the place of removal and, therefore, credit cannot be denied in view of specific coverage of outward transportation in the inclusive part of definition of input services . In support of this submission, he relied upon the following case laws : (i) Placo Metals Ltd. vs. CCE, Ahm [2012 (280) ELT 299 (Tri.-Ahm)] (ii) Hydro S & S Industries Ltd. Vs. CCE, Trichirapalli [2013 TIOL-1089-CESTAT-MAD] (iii) Jammu Auto Industries Ltd. vs. CCE, Panchkula [2013 (31) STR 587 (Tri.-Del.)] (iv) Menon Pi....