2017 (8) TMI 544

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....of goods to the branch/depot. Since the issue involved in both the appeals is identical, therefore both the appeals are being disposed of by this common order. For the sake of convenience, the facts of appeal No.E/21426/2015 are taken. 2. Briefly the facts of the present case are that the appellants are holders of Central Excise Registration engaged in the manufacture and clearance of Concrete AD Mixture falling under Chapter 38 of the Central Excise Tariff Act, 1985. They are enjoying the facility of CENVAT credit under the CENVAT Credit Rules, 2004 (CCR). During the course of audit, it was observed that the appellant have irregularly availed and utilized service tax credit on outward freight incurred for transportation of their final pro....

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....f service tax paid on outward transportation of goods to the depot/branches only and has not taken credit on the outward transportation of goods to their customers. She further submitted that the invoice-cum-delivery challan clearly evidences that the appellant had cleared the goods to the branch as stock transfer wherein no VAT/CST has been charged in the invoices. She also submitted that the appellant and RMC Readymix (India) Pvt. Ltd. are divisions of M/s. Prism Cement Ltd. which is evident from the scheme of amalgamation effected on 1.4.2009. She also submitted that the Department has erred in alleging that the goods have been cleared to end customers and the alleged end customers as referred in carriers, hired by the appellant to trans....

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....d are the invoices and delivery challans which clearly evidences that the goods are stock transfer and not of sale where no VAT/CST is charged and the sales tax number shown in the invoice is of the same company. As the goods are not sold, the ownership is not transferred to any third person and the risk of title of goods remained with the company till destination. Further, the appellant produced the Chartered Accountant certificate certifying that the cost of the goods include the freight for outward transportation on which the duty is paid and in support or this submission, the counsel relied upon the following decisions. Tata motors Ltd. Vs. CCE: Final Order No.20816/2016 dated 21.9.2016 CCE, Bangalore Vs. Ultratech Cement Ltd.: 2016 (....