TaxTMI 
TaxTMI 
2019 (6) TMI 269
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt services such as Pilotage, Towage, Mooring and also supply of required manpower for providing such services at the Marine Terminal Facility (MTF), Karaikal belonging to the appellant for the purposes of clearance of caustic soda lime through marine tanker vessels to Visakhapatnam Port and from there to the customer. The department was of the view that the services provided by M/s. Ocean Sparkle Ltd. is in the nature of outward transportation of goods and that the appellant is not eligible to avail credit of the service tax paid for those services as the place of removal is the factory gate of the appellant. Show Cause Notice was issued proposed to disallow the credit and also to recover the same along with interest and for imposing penal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ort operations and ship management services such as Pilotage, Towage, Mooring and also supplying required manpower for providing services at the MTF. The MTF belongs to the appellant. Thus, whatever services are provided by M/s. Ocean Sparkle Ltd. is within the premises of the appellant and cannot be said to be providing services outside the factory gate. It is also contended by him that the appellant has to supply goods at Visakhapatnam Port which is clear from the purchase orders. This would also show that the sale takes place at the buyer's premises which is Vishakhapatnam Port. Thus, the sale has not taken place at the factory gate of the appellant and therefore the contention that the appellant is not eligible for credit being outward ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the buyer's premises. The activities rendered by M/s. Ocean Sparkle Ltd. is with regard to transportation of goods only and therefore being outward transportation, the credit is not eligible beyond the place of removal which is the factory gate. She also submitted that the authorities below have taken into consideration the Circular No. 988/12/2014 dated 20.10.2014 issued by CBEC and the decision of the Hon'ble Supreme Court in the case of Commissioner of Central Excise Vs. Ultratech Cement Ltd. reported in 2018 (9) GSTL 337 (SC). The circular No. 999/6/2015 dated 28.2.2015 also clarifies the issue of place of removal. The place where sale takes place or when the property in the goods passed from the seller to the buyer is relevant cons....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t was further observed that the Taxpayer has availed CENVAT Credit of the service tax paid on the above services provided by M/s. Ocean Sparkle Ltd. in respect of the clearance of caustic soda lye through Marine Tanker Vessels to Visakhapatnam Port (for domestic clearance). The amount of CENVAT credit of the service tax availed on such services by the Taxpayer for the period from February 2015 to January 2016 works out to Rs. 3,57,481/- (consisting of S. Tax - 3,47,070/-, Education Cess - 6,941/- and SHE Cess - Rs. 3,470/-)." 6. From the above, it can be seen that M/s. Ocean Sparkle Ltd. is engaged to provide mainly Port Operations, Ship Management Services and also manpower supply service at MTF, Karaikal Port. Undisputedly, this MTF is....
X X X X Extracts X X X X
X X X X Extracts X X X X
....through the pipeline and no third party is engaged for the said purposes." 7. The ld. counsel has submitted that the activity would be GTA service only when the goods are carried by road and consignment note is issued. In the present case, the goods are not transported by road. However, it is transported by pipeline and there is no issuance of consignment note. There is no evidence that the appellant has paid any freight charges for the transportation of goods from the factory gate to the MTF. It is transported through pipeline owned by the appellant. The case of the appellant is that the property of the goods passes to the buyer only at the Visakhapatnam Port and not at the factory gate. As per the agreement / purchase order, it is cont....