2020 (1) TMI 582

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....ayon Tyre Cord Fabric. During the manufacture of the process certain sludge/waste arises which in terms of Rajasthan State Pollution Control Board, instructions is required to be cleared from the factory to the land fill area from the factory. The appellant entered an agreement for clearance of the same. The service provider lifted the sludge/waste from their factory premises, dumped in the land fill and issued invoices. While issuing invoices, the service provider bifurcated the charges wherein transportation charges and Toll charges were separated but the service provider paid service tax on full amount of the invoice. The appellant availed Cenvat credit of the said service tax paid by them. The availment of Cenvat credit on transportatio....

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....d to avail Cenvat credit on transportation/Toll charges paid for transportation of sludge and waste cleared from their factory for manufacture of their final product or not. 7. In terms of Rule 2(l) of Cenvat Credit Rules, 2004 the Cenvat credit is disallowed for finished goods to be cleared to the place of buyer beyond the place of removal. In this case, there is no buyer of this sludge cleared by the appellant. Moreover, the same is required to be dumped in terms of the Rajasthan State Pollution Control Board's direction to run their factory. Therefore, the appellant is mandatory required to clear the sludge from their factory and for clearance of the said sludge, the appellant availed transportation services which are like transportat....