TaxTMI 
TaxTMI 
2018 (2) TMI 1394
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....tery Cells, falling under Chapter 85 of the Central Excise Tariff Act, 1985. For delivery of the goods at buyer's premises, the appellants avails the services of goods transport agency and pays outward freight on such transportation. In the capacity of recipient of such service, the appellant discharges service tax liability under Reverse Charge Mechanism. The appellant avails cenvat credit of service tax paid on outward transportation of the goods. In these cases, the Department issued show cause notices for the period April, 2005 to March, 2016 seeking disallowance of cenvat credit on the ground that outward freight paid on the GTA service is not conforming to the definition of „input service" contained in Rule 2 (l) of the Cenvat C....
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....sessable value, the appellant discharged appropriate central excise duty liability. Thus, it is his submission that freight paid for transportation of the goods for delivery at the buyer's premises should be considered as the "place of removal" for the purpose of consideration as input service, for availment of cenvat benefit. To support such stand that the appellant should be entitled for the cenvat benefit for the freight element, the ld. Advocate has relied on the decision of this Tribunal in the case of Mahle Engine Components India Pvt. Ltd. - 2017 (51)STR 44 (T-Delhi), Birla Corporation Ltd. - 2016 (45) STR 103 (T-Allahabad), Forace Polymers Pvt. Ltd. - 2016 (45) STR 198 (T-Delhi) and the Final Order No.10424-10473/2017 dated 27.0.201....
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....uch factory gate should be considered as the place of removal for the purpose of consideration as "input service". I find that the Hon'ble Gujarat High Court in the case of Parth Poly Woven Pvt. Ltd. - 2012 (25) STR 4 (Gujarat) and the Hon'ble Karnataka High Court in the case of ABB Ltd. - 2011 (23)STR 97 (KAR) have allowed cenvat credit benefit on the freight element in respect of the goods removed from the place of removal i.e. factory gate. Thus, service tax paid by the appellant for the period August, 2005 to March, 2008 should fall under the definition of "input service" for the purpose of cenvat benefit. 7. The definition of "input service" was amended vide Notification no.10/2008-CE(N.T.), dated 01.03.2008, w.e.f. 1.4.2008. The effe....
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....l". On perusal of the said clarification of the Board, it reveals that there is no difference between the amendment in the definition of "input service" effective upto 10.07.2014 and the amendment brought out on 11.07.2014. In other words, the crucial aspect for consideration of "input service" is the place, where the title of the property passes on by the seller to the buyer. In this case, since copy of the purchase orders /invoices demonstrate that the ownership of the goods were in fact transferred from the appellant to its buyers at their premises and the transaction was on FOR destination basis, the service tax paid on freight element should be eligible for cenvat benefit. 9. However, since the appellant, at this juncture, has not pro....