2017 (11) TMI 250

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....ls being similar was heard together, and are being disposed of by this common order. E/41801 to 41804/2017 2.1 The brief facts of the case are that appellants availed cenvat credit on the outwards transportation services of the finished goods from their factory to the customer's premises. The department was of the view that the said services would not qualify as input service since the buyer's premises cannot be considered a place of removal. After due process of law, the original authority confirmed the demand along with interest and also imposed penalties. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2.2 On behalf of appellant, Ld. counsel Ms. S. Sridevi submitted that the appellant has availe....

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....factory to buyer's premises. SCN was issued proposing to deny the credit and for recovery of the same along with interest. After due process of law, the original authority confirmed the demand, interest and imposed penalty. Hence this appeal. 4.2 On behalf of appellant, Ld. Counsel Ms. S. Sridevi adverted to pages 66, 71 etc. in which it is indicated that the transportation is on F.O.R. Destination. Appeal E/41961/2017 5.1 The brief facts of the case are that appellant is a manufacturer of LPG stoves, Aluminium Pressure Cookers etc. On verification of records, it was noticed that appellant had taken credit of service tax paid on outward transportation for the clearances of their finished goods from their factory to their buyers....

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....arathy, Consultant submitted that in the appellant's own case (Madras Cements Ltd.) the issue was considered by the Hon'ble High Court of Karnataka reported in 2015 (40) STR 645 (Kar.), wherein the Hon'ble High Court has held that appellant is eligible for credit. Similarly, for a different period, the Commissioner (Appeals) vide OIA No.14/2016 dt. 23.2.2016 has also allowed the credit observing that the clearances of the goods are on FOR Destination. 7. Ld. A.R Shri Arul C.Durairaj appeared in all the above appeals on behalf of respondent-Revenue. He contended that definition of 'input services' provides that services used by the manufacturer in relation to the manufacture of final products and clearance of final pro....

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.... or damage to the goods during transit to the destination; and (iii) the freight charges were an integral part of the price of goods. In such cases, the credit of the service tax 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." Thus from the above clarifications issued by the Board, it is seen that in cases where the ownership of the goods remains with the seller, till it is delivered to the buyer's premises, assessee would be eli....