TaxTMI 
TaxTMI 
2018 (10) TMI 1204
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....of duty paid on inputs, capital goods and services as provided under the provisions of Cenvat Credit Rules, 2004 (CCR). During an audit, the Department observed that the appellants were wrongly taking cenvat credit of service tax paid on inelligible services like telephone courier, annual maintenance of computer and AC, advertising agency, rent-a-cab operator service and business auxiliary services etc., these services not being specified in CCR nor being used in or in relation to manufacture of final products. Resultantly, a Show Cause Notice dated 16.03.2012 was served upon them proposing the recovery of cenvat credit wrongly availed alongwith the interest at the appropriate rate and the proportionate penalty. The said demand was confirme....
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....facturer shall be included as import service because in that case, the place of removal is the buyers‟ place as the property in good has passed on to the buyer at the time of receiving goods after those being delivered at their place. Similarly, in case of exports, since port is the place of removal and CHA services are obtained at the port, hence are very much categorised as the input services. The Order of Commissioner(Appeals) confirming the recovery of cenvat credit qua both these services is therefore alleged to be wrong hence is prayed to be set aside. Appeal is prayed to be allowed. 4. Ld. Counsel has relied upon: Birla Corporation Ltd. Vs. C.C.E., Jaipur-II 2018(10) G.S.T.L. 43 (Tri.-Del.), Mahle Engine Co....
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....judicated in the present case is as to whether the value of CHA Service and outward transportation in the case of sale to the customer, the value has to be the part of the transaction value so as to entitle the appellant to avail the cenvat credit or not. 9. For the purpose, the definition of input service is relevant. Input service is defined in Rule 2(1) of the Cenvat Credit Rules, 2004 which reads as under: "2(l) Input Service means any service:- (i) Used by a provider of taxable service for providing an output services; or (ii) Used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal and include....
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....dit availability is in regard to „inputs‟. The credit covers duty paid on input materials as well as tax paid on services, used in or in relation to the manufacture of the „final product‟. The final products, manufactured by the assessee in their factory premises and once the final products are fully manufactured and cleared from the factory premises, the question of utilization of service does not arise as such services cannot be considered as used in relation to the manufacture of the final product. Therefore, extending the credit beyond the point of removal of the final product on payment of duty would be contrary to the scheme of Cenvat Credit Rules. The main clause in the definition states that the service in re....
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.... (ii) a warehouse or any other place on premises wherein the excisable goods have been permitted to be deposited without [payment of duty;] (iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods re to be sold after their clearance from the factory; In a previous decision also i.e. in M/s Gujarat Ambuja Cement Ltd. Vs. C.C.E., Ludhiana 2007(6) STR 249 (Tri.-Del.) has held that the post sale transport of manufactured goods is not an input for the manufacturer or the consigner. The two clauses in the definition of input services take care to circumscribe input credit by stating that the service used in relation to clearance from the place of removal and service used for out....