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2018 (7) TMI 686
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....ervice tax paid for input services. On verification of records, it was noticed that during the periods September 2009 to February, 2010 and October 2014 to April 2015, May 2015 to February 2016, the appellant had availed CENVAT credit on outward transportation of goods for the goods cleared from their factory gate to their own units at Jamshedpur and Uttarakhand on stock transfer basis. Show cause notices were issued proposing to disallow the credit and for recovery of the CENVAT credit along with interest and for imposing penalties. After due process of law, the original authority confirmed the duty demands and imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Aggrieved, the appellants are now before this Tribunal. 3....
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....r took assistance of the decision of the Tribunal in the case of Commissioner of Central Excise Vs. Lafarge India Pvt. Ltd. - 2017 (52) STR 350 (Tri. Del.) and Cadbury India Ltd. - 2016 (42) STR 155. 4. The ld. AR Shri S. Govindarajan supported the findings in the impugned order. He relied upon the judgment in the case of Commissioner of Central Excise Vs. Ultratech Ltd. - 2018 (9) GSTL 337 (SC). He argued that in the said case, the Hon'ble Apex Court had held that the credit availed on GTA services upto the buyers' premises after 1.4.2008 is not eligible. 5. Heard both sides. 6. For better appreciation, the relevant provisions of law are reproduced as under:- "Place of removal" means - (i) a factory or any other ....
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...., advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal. [but excludes], - [(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or ....
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....pra) was relied by the ld. counsel in this regard. On perusal of the facts of the said case, it is seen that the CENVAT credit on GTA was received for clearance of the job work and to their own unit on payment of duty. The relevant portion of the order is reproduced as under:- "6. I find that both lower authorities have confirmed demand of Cenvat credit on GTA only on the ground that clearances to the job worker and their own unit made on payment of duty, for this reason it was contended that factory of the appellant is place of removal and credit cannot be allowed beyond the place of removal. I find that though the goods were cleared on payment of duty but it is admittedly not clearance for sale of the goods. In terms of Section 4....
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....d hence qualified as input service. As per this clear position in law, I am of the view GTA in the present case being used up to the place of removal covered under the definition of input service and hence admissible for Cenvat credit. I therefore, set aside the impugned order and allow the appeal with consequential relief, if any, in accordance with law." 8. In Lafarge India Pvt. Ltd. (supra), the Tribunal referring to Roofit Industries Ltd. (supra), has observed that credit of service tax paid on transportation of clinker to their sister unit is admissible as there is no case of sale and transfer of property in goods at the factory gate. The relevant portion is as follows:- "6. After careful consideration of the facts, the sub....
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....al which is the factory gate. The relevant portion of the judgment is reproduced as under:- "7. It may be relevant to point out here that the original definition of 'input service' contained in Rule 2(l) of the Rules, 2004 used the expression 'from the place of removal'. As per the said definition, service used by the manufacturer of clearance of final products 'from the place of removal' to the warehouse or customer's place etc., was exigible for Cenvat Credit. This stands finally decided in Civil Appeal No. 11710 of 2016 (Commissioner of Central Excise Belgaum v. M/s. Vasavadatta Cements Ltd.) vide judgment dated January 17, 2018. However, vide amendment carried out in the aforesaid Rules in the year 2008, which became effective ....