TaxTMI 
TaxTMI 
2020 (1) TMI 940
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....not and Company Limited (Unit - Waldies) is engaged in the manufacture of chemicals at its sole manufacturing facility at Konnagar, District - Hooghly. The Waldies Division also comprises of three depots located at Delhi, Mumbai and Coimbatore. The registered office of the Appellant at Gillander House, N.S. Road, Kolkata - 700001, is duly registered as an Input Service Distributor (ISD). 2. The Appellant operates under the Cenvat Credit Scheme and has been discharging its excise duty liability on the clearance of finished goods from its manufacturing facility after utilizing the Cenvat credit availed, inter alia, on input services. Pursuant to an audit of records and returns of the Appellant for the period March 2009 to December 2012, a Sh....
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....e premises of the buyer/customer but comprised of different categories as claimed by the Appellant duly supported by a C.A. Certificate dated 2 February 2018. 3. The Ld. A/R for the Appellant has assailed the 'OIA' on the following grounds: (a) The 'OIA' has clearly travelled beyond the scope of the Notice in so far as it seeks to deny Cenvat credit of service tax on services other than Goods Transport Agency (GTA) services availed for outward transportation of finished goods from the factory premises to the premises of the buyer being the sole allegation in the Notice. Reliance in this regard was placed upon the following decisions: * Commissioner of Central Excise Vs. Gas Authority of India Ltd. - 2008 (232) E.L.LT 7 (S.C.); ....
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....tood included in the transaction value of finished goods on which excise duty was discharged. Moreover, the finished goods supplied were subject to inspection and approval at the premises of the buyer and thus, the property in goods stood transferred only at the premises of the buyer/customer in terms of Section 24 of the Sale of Goods Act. Therefore, the place of removal was the buyer's premises and service tax paid on outward transportation upto the place of removal was eligible for credit, drawing support from the Circulars dated 23 August 2007 and 20 October 2014 as also the following decisions. (i) CC Vs. Ultratech Cement - Tax Case No. 53 of 2017 (Chhattishgarh High Court) and the Order of the Hon'ble Supreme Court dismissing the S....
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....t from the decision of the Hon'ble Tribunal in Parekh Plast (India) Pvt. Ltd. Vs. CCE, Vapi reported in 2012 (25) STR 46 (Tri. - Ahmd). (f) Credit of service tax of Rs. 22,35,066/- availed on the strength of ISD invoices is sought to be denied on the purported ground that the same reflected the recipient of such credit as the "Waldies Division" without any particulars of the factory premises where the credit has actually been availed. The Ld. A/R submits that there was only one factory within the "Waldies Division" i.e. the Waldies Unit and therefore, non-reflection of the factory particulars of the Waldies Unit was a curable procedural defect and that the substantive benefit of Cenvat should not be denied for such procedural breach by re....
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....in the contention of the Appellant that the denial of credit in respect of the other four issues was clearly beyond the scope of the Notice, which lays the foundation for any proceeding and an altogether new case could not have been made out at the appellate stage being violative of the principles of natural justice. As regards the issue of eligibility of Cenvat credit of service tax paid on outward transportation from the factory to the buyer's premises is concerned, I find that the interpretation as to the place of removal extending to the buyer's premises was very much prevalent in the field prior to the contrary decision of the Hon'ble Supreme Court in Ultratech case cited (supra) by the revenue. One such decision rendered in Tax Case N....
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....ertificate is upheld along with interest thereon. 7. The demand confirmed on account of the other four issues is even otherwise unsustainable, as discussed hereinafter. In so far as the credit of service tax on inward transportation of inputs to the factory premises and outward transportation of finished goods upto the depots are concerned, I am in agreement with the contentions of the Appellant that these are specifically covered by the inclusive limb of the definition of input service as contained in Rule 2(l) of the CCR. The sample monthly calculation sheets and tax payment challans clearly refute the findings in the 'OIA' as regards lack of any evidence as to payment of service tax on GTA services. Besides, such finding in the 'OIA' al....