2017 (9) TMI 210

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.... The first appeal is filed by the department and all remaining appeals are filed by the assessee-Appellant against orders dated 29.6.11, 29.12.14, 27.3.2014, 28.10.2014, 09.12.2014, 29.12.2014, 31.03.2015, 27.11.2015, 12.07.2016, 27.11.2015 & 31.03.2016 respectively. 2. In all the appeals, the common issue is whether the service of transportation upto the customer's doorstep i.e. "FOR destination" sales where the entire cost of freight is paid and borne by the manufacturer, would be "input service" within the meaning of Rule 2(1) of the CC Rules, 2004. 3. All the appellants are engaged in the manufacture of cements and sold the cement on "FOR destination" basis and claimed cenvat credit which was denied by the department. Being aggri....

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....the service tax paid on goods transported by it by road'. The issue, in fact, has emerged out of the order of the Tribunal passed in the case of the appellant itself The Board has opined that the phrase 'place of removal has to be determined by taking into account the acts of each case. According to the circular, the expression 'place o removal' has been de med by Section 4 of the 1944 Act and according to sub-rule (t) of Rule 2 o the CC Rules, if any words or expression used in those rules are not defined but are defined in the 1944 Act or the 1994 Act then they are to be given the same meaning for the CC Rules as assigned to them in those Acts. Accordingly, reliance on Section 4 of the 1944 Act has been made where place of....

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....paid on the transportation up to such place of sale would be admissible if it can be established by the claimant of such credit that the sale and the transfer of property in goods (in terms of the definition as under section 2 of the Central Excise Act, 1944 as also in terms of the provisions under the Sale of Goods Act, 1930) occurred at the said place." 9. It is well settled that the circulars issued by the Board are binding and aims at adoption of uniform products. In that regard reliance has been rightly placed on the judgment of Hon'ble the Supreme Court in the case of Paper Products Ltd. (supra) and such circulars are binding on the department. Placing reliance on earlier judgments of the Supreme Court in the cases of CCE v. Usha....

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....ther the appellant fulfills the requirement of circular. The first requirement is that the ownership of the goods and the property therein is to remain with the seller of the goods till the delivery of the goods in acceptable condition to the purchaser at his door step. The aforesaid condition has to be considered to be fulfilled because the supply of cement by the appellant to its customer is 'FOR destination'. The appellant also bears the freight in respect thereof up to the door step of the customer. The freight charges incurred by it for such sale and supply at the door step of the customer are subjected to service tax which is also duly paid by the appellant. Moreover, the definition of expression 'input service' is availab....