TaxTMI 
TaxTMI 
2018 (12) TMI 71
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....Pipes and Tubes classifiable under Chapter 72 & 73 of the Central Excise Tariff Act, 1985. They availed credit on input service including Good Transport Agency Service. A Show Cause Notice dated 05/03/2008 was issued for the period 2004-05 to 2007-08 (upto November 2007) alleging that credit of Service Tax paid on outward freight on goods cleared from factory to the customer's premises i.e. beyond the place of removal, is not admissible in terms of definition of 'Input Service' as contained in Rule 2(1) of Cenvat Credit Rules, 2004. 3. The Adjudicating Authority disallowed the credit of Service Tax amounting to Rs. 1,93,255/- and ordered for recovery along with interest and imposed penalty of Rs. 2,000 under Rule 15 (3) of Cenvat Credit Ru....
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....of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation from the place of removal; The phrase 'place of removal' is defined under Section 4 of the Central Excise Act, 1944. It states that- (i) A factory or any other place or premises of production or manufacture of the excisable goods; (ii) A warehouse or any other place or premises wherein the excisable goods have been permitted to be stored without payment of duty. (iii) A depot, premises of a consignment agent or any other place ....
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....relevant time i.e. prior to April 1, 2008, the aforesaid contention of the Department cannot be accepted. 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 stand 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. The matter is squarely covered by the Board's Circular dated August 23, 2007, relevant portion whereof is an under: "ISSUE: Up to what stage a manufacturer/consignor can take credit on the service tax paid on goods transport by road? COMMENTS: This issue has been examined....
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....ordance with the legal provisions. In conclusion, a manufacturer / consignor can take credit on the Service tax paid on outward transport of goods up to the place of removal and not beyond that. 8.2 In this connection, the phrase 'place of removal' needs determination taking into account the facts of an individual case and the applicable provisions. The phrase 'place of removal' has not been defined in CENVAT Credit Rules. In terms of sub-rule (t) of rule 2 of the said rules, if any words or expressions are used in the CENVAT Credit Rules, 2004 and are not defined therein but are defined in the Central Excise Act, 1944 or the Finance Act, 1994, they shall have the same meaning for the CENVAT Credit Rules as assigned to them in those Acts.....
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....ing 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." 8) As can be seen from the reading of the aforesaid portion of the circular, the issue was examined after keeping in mind judgments of CESTAT in Gujarat Ambuja Cement Ltd. And M/s. Ultratech Cement Ltd. Those judgments, obviously, dealt w....