2007 (8) TMI 285

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....6. 2. The respondents are absent despite notice. Since the issue involved in this case is squarely covered by the decision of the Division Bench of the Tribunal, the appeal is taken up for disposal in the absence of the Respondent. Heard the Ld. SDR and perused the records. It is seen from the records that the respondents were availing Cenvat credit on the outward transportation charges paid by them to goods transport operators. Such credit was sought to be denied by the Revenue and the adjudicating authority confirmed the demand, imposed penalties and also sought to recover interest from the respondent. On an appeal Ld. Commissioner (Appeals) has allowed the appeal of the Respondent on the following finding:- "I have carefully gone t....

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....oval" which shall mean that the definition covers removal from depots to buyers' premises and "upto the place of removal" shall mean outward clearance of final goods from factory to depots.  Therefore, it is from the definition that the transportation of goods from factory to depot as also from depots to customer place is covered by the definition of inputs service as per the said Rule. Since the provisions of the cenvat credit and therefore, in view of the definition  of "input service", the appellants are entitled to take credit of service tax paid for outward transport of their final  products from the place of removal to their customers. There is therefore, no merit in the stand of the department. Accordingly, the dema....

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....cture remains settled by the judgments of Hon'ble Supreme Court in the cases of Bombay Tyre International - 1983 (14) E.L.T. 1896 (S.C.), Indian Oxygen Ltd., 1988 (36) E.L.T. 723 (S.C.) and Baroda Electric Meters, 1997 (94) ELT 13 (S.C.)] The interpretation canvassed by the appellant is also contrary to the Rule on the subject contained in the judgment of Hon'ble Supreme Court in the Reserve Bank case. A statute is to be read as a whole and words used interpreted taking into account the context in which they are used. Definitions are to be looked at as a whole. Clauses of a definition are not to be read disjunctively.  In the present case, the statute deals with a tax on manufacture. The definition is in the context of relief in reg....