TaxTMI 
TaxTMI 
2019 (2) TMI 1096
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....d 2009-2010 (Upto November, 2009). Show-cause notice dated 25.03.2010 was issued. Show-cause notice mentioned that the assessee had already reversed/paid amounts of Rs. 17,852/- and Rs. 12,617/- i.e. for the period post 01.04.2008. The Adjudicating Authority confirmed the demand of Rs. 1,15,681/- and appropriated an amount of Rs. 30,469/- as paid by the appellant. Interest of Rs. 2,694/- has already been paid and the same has already been appropriated in the impugned order. A penalty of Rs. 85,212/- was imposed under Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. On appeal, the Commissioner (Appeals) dismissed the appeal. Hence the present appeal. 3. Heard both sides and perused the appeal reco....
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....y, inward transportation of inputs or capital goods and outward transportation upto the place of removal;" 3. The Full Bench of CESTAT in M/s. ABB Limited case, which has been upheld by the Karnataka High Court as mentioned above, has interpreted the aforesaid Rule observing that it is in two parts. In the first part, input service is defined with the expression "means" and in that context input service is defined as any service used by a provider of a taxable service or providing an output service or used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products "from the place of removal". It is further held that second part of the definition starts from "....
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....ace. The assessees had claimed the tax paid on the transportation of final products from the place of removal (i.e. the place of manufacture) to either the place to their respective depots or transport upto the place of the customers, if from the place of removal the goods were directly delivered at customers place. It is made clear that only first set of transportation from the place of removal was claimed. To put it otherwise, in those cases where the tax paid on transportation on the goods from the place of removal upto the place of depot only that was claimed and if there was any such tax again paid from the place of depot to the place of customers, the Cenvat credit thereof was not claimed and there is no dispute about it. 6. The afo....
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....hed the place of removal, to clear the final products nothing more needs to be done, except transporting the said final products to the ultimate destination i.e. the customer's/buyer of the said product, apart from attending to certain ancillary services as mentioned above which ensures proper delivery of the finished product upto the customer. Therefore, all such services rendered by the manufacturer are included in the definition of 'input service'. However, as the legislature has chosen to use the word 'means' in this portion of the definition, it has to be construed strictly and in a restrictive manner. After defining the 'input service' used by the manufacturer in a restrictive manner, in the later portion of the definition, the legisl....
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.... of removal". It has to be from the place of removal upto a certain point. Therefore, tax paid on the transportation of the final product from the place of removal upto the first point, whether it is depot or the customer, has to be allowed. 8. Our view gets support from the amendment which has been carried out by the rule making authority w.e.f. 1-4-2008 vide Notification No. 10/2008-C.E. (N.T.), dated 1-3-2008 whereby the aforesaid expression "from the place of removal" is substituted by "upto the place of removal". Thus from 1-4-2008, with the aforesaid amendment, the Cenvat credit is available only upto the place of removal whereas as per the amended Rule from the place of removal which has to be upto either the place of depot or the ....