2019 (6) TMI 513

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... charges to Haldia Dock Complex for clearance of their final products beyond the place of removal. Show Cause Notice dated 21/5/2008 was issued for alleged violation of the provisions of Rule 2(l), 3(1) and 3(4)(a) of the Cenvat Credit Rules, 2004. The adjudicating authority dropped the proceedings initiated vide the show cause notice. Being aggrieved, the Department was in appeal before the Lower Appellate Authority. The Ld. Commr. (Appeals) set aside the Order-in- Original dated 14/09/2009 and allowed the Revenue's appeal. Hence the present appeal by the assessee before the Tribunal. 2. The Ld. Assistant Manager (Finance) appearing on behalf of the appellant company submits that the period involved in the present appeal is from Novembe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....age Charges of Port railway system is for undertaking the following functions- • Placement of wagons • Siding and Shunting of wagons • Inward movement of empty wagons from railway yard outside port area to factory premises • Outward movement of loaded wagons from factory premises. This charge is fixed/sanctioned and revised by the Govt. of India from time to time for different Port Trust all over the country. 6. Further, Board's Circular No. 97/8/2007-ST dated 23.8.2007 clarified the issue as to up to which stage a manufacturer or consigner take benefit of tax on goods sent by transport ("A"). Para 8.2 of the Board's circular lay down the requirement of fulfilling three conditions, n....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....10 observed that " Place of Removal" shall be taken to be the port of loading and consequently all the services availed upto the port shall qualify to be the input service as per existing Rule 2 of CCR, 2004 and in terms of Board's Circular No.97/8/2007-ST dated 23.08.2007, a manufacturer can take credit on the service tax paid on outward transportation of goods upto the place of removal. 8. The Ld. Commissioner (Appeal) confirmed the demand based on the Hon'ble CESTAT decision in the case of M/s. Ambuja Cements Limited Vs. CCE, which was overruled by the High Court of Punjab & Haryana [2009- TIOL-110-HC-P&H-ST]. The Hon'ble High Court held that since the ownership of the goods passed on to the purchaser at the door step of the purchaser....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Rule 2(1) of the CENVAT Credit Rules, 2004 and thereby enabling the manufacturer to take credit of the service tax paid on the value of such services (Para 15,23,24 & 25). 10. On appeal by the Revenue against the aforesaid CESTAT Larger Bench decision, the HC at Karnataka held that "OUTWARD TRANSPORTATION OF FINISHED GOODS FROM THE PLACE OF REMOVAL COVERED BY DEFINITION OF INPUT SERVICE UPTO 31/03/2008, SERVICE TAX PAID THEREON ELIGIBLE AS CENVAT CREDIT". Order No.(2011 TIOL- 395-HC KAR-ST). The Hon'ble High Court held that 'the interpretation placed by us on the words 'clearance of final products from the place of removal' and the subsequent amendment by notification 10/2008 CE (NT) dated 1.3.2008 substituting the word 'from' in the sa....