TaxTMI 
TaxTMI 
2023 (10) TMI 802
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....ods transport agency services' deployed for transportation of the finished products to the customers' premises which thus claimed as on 'free-on-rail' (FOR) terms. Consequent upon the decision of the Larger Bench of the Tribunal in ABB Ltd v. Commissioner of Central Excise & Service Tax, Bangalore [2009 (15) STR 23 (Tri.-LB)], upholding the eligibility of credit of services deployed for outward transportation from 'place of removal', unavailed CENVAT credit was taken by them on 26th August 2009. The objection raised by the jurisdictional central excise authorities resulted in the order [order-in-original no. 13/MAK(13) COMMR/RGD/13-14 dated 11th June 2013 ] of the Commissioner of Central Excise, Raigad directing recovery of Rs. 6,79,4....
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.... ELT 252 (Tri.Del.)] which was referred to in the decision of the Tribunal in Steel Authority of India Ltd v. Commissioner of Central Excise, Raipur [2013 (287) ELT 321 (Tri.Del.)] reiterated the absence of any specific time-period in CENVAT Credit Rules, 2004. 4. According to Learned Authorised Representative, the decision of the Hon'ble Supreme Court in Escorts JCB Ltd v. Commissioner of Central Excise, Delhi - II [2002 (146) ELT 31 (SC)] defining 'place of removal' would jeopardise the stand of the appellant that, insofar as CENVAT Credit Rules, 2004 are concerned, the credit for services beyond the 'place of removal' be also allowed. Furthermore, he places reliance on the decision of the Hon'ble Supreme Court in Commissioner of Customs....
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....m the place of removal". Obviously, any input service given for clearance of the final products "from the place of removal" and tax paid thereon the Cenvat credit has to be given. The question is from the place of removal up to what place. The assessees had claimed the tax paid on the transportation of final products from the place of removal (i.e. the place of manufacture) to either the place to their respective depots or transport upto the place of the customers, if from the place of removal the goods were directly delivered at customers place. It is made clear that only first set of transportation from the place of removal was claimed. To put it otherwise, in those cases where the tax paid on transportation on the goods from the place of....
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....portation is not specifically used in the said section in the context in which the phrase 'clearance of final products from the place of removal' is used, it includes the transportation charges. Because, after the final products has reached the place of removal, to clear the final products nothing more needs to be done, except transporting the said final products to the ultimate destination i.e. the customer's/buyer of the said product, apart from attending to certain ancillary services as mentioned above which ensures proper delivery of the finished product upto the customer. Therefore, all such services rendered by the manufacturer are included in the definition of 'input service'. However, as the legislature has chosen to use the word 'm....
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.... removal. Therefore, in the later portion of the definition, an outer limit is prescribed for outward transportation, i.e., up to the place of removal. 7. As mentioned above, the expression used in the aforesaid Rule is "from the place of removal". It has to be from the place of removal upto a certain point. Therefore, tax paid on the transportation of the final product from the place of removal upto the first point, whether it is depot or the customer, has to be allowed. 8. Our view gets support from the amendment which has been carried out by the rule making authority w.e.f. 1-4-2008 vide Notification No. 10/2008-C.E. (N.T.), dated 1-3-2008 whereby the aforesaid expression "from the place of removal" is substituted by "upto the plac....