2018 (12) TMI 847

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....ding Cenvat credit availed on the service tax paid by the appellants in respect of the services received by them from the various transporters towards outward transportation of excisable goods from the appellant's factory to the buyer's premises (carriage outwards) during the period 2006-2007 and 2007-2008 (Upto February, 2008). 4. I find that the present issue is no more res-integra and is decided in favour of the appellant in view of the decision of the Hon'ble Supreme Court in the case of Commr. of Customs, Central Excise & S.Tax, Guntur Vs. Andhra Sugars Ltd. reported in 2018 (10) GSTL 12 (S.C.). For better appreciation, the relevant Paragraphs are reproduced below: "6. As mentioned above, in these cases, the assessees are claimin....

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.... Tri-D]. In this case, CESTAT has made the following observations :- "the post sale transport of manufactured goods is not an input for the manufacturer/consignor. The two clauses in the definition of 'input services' take care to circumscribe input credit by stating that service used in relation to the clearance from the place of removal and service used for outward transportation upto the place of removal are to be treated as input service. The first clause does not mention transport service in particular. The second clause restricts transport service credit upto the place of removal. When these two clauses are read together, it becomes clear that transport service credit cannot go beyond transport upto the place of removal. The two cl....

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.... "place of removal" means - (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 or premises from where the excisable goods are to be sold after their clearance from the factory; from where such goods are removed." It is, therefore, clear that for a manufacturer/consignor, the eligibility to avail credit of the service tax paid on the transportation during removal of excisable goods would depend upon the place of removal as per the definition. In case of a factory gate sale, sale fr....