2023 (11) TMI 469

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....confirming the Cenvat Credit demand, while, imposed penalty equal to 50% of confirmed cenvat demand under the provisions of Rule 15(2) of Cenvat Credit Rules 2004 read with  Section 11AC of the Central Excise Act, 1944. Revenue's grievance in appeal is that Ld. Commissioner has imposed a lesser penalty to the tune of Rs. 30,72,269/-. 2. The brief facts of the case are that the Appellant are engaged in the manufacture of Pharmaceutical products and also availing the benefit of cenvat credit as per the provisions of Cenvat Credit Rules 2004. During the course of audit of cenvat credit documents, it was noticed that the appellant had availed the CENVAT Credit on CHA Services and Outward freight used in relation to export of goods. The sa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd therefore, in the present case the place of removal is port and all the services availed upto the port are input services and cenvat credit of service tax paid on them is eligible. 4. He also submits that the CBEC has viewed in Board Circular No. 1065/4/2018-CX dtd. 08.06.2018 that the 'Place of Removal' is required to be determined with reference to "Point of Sales". He also placed reliance on the following Judgments: (i) Suchitra Components Vs. CCE -2007(208)ELT 321 (SC) (ii) Commissioner Vs. Roofit Industries Ltd. -2015(319)ELT 221 (SC) 5. He further submits that vide Circular No. 999/6/2015-CX dtd. 28.02.2015, it was clarified that in the case of exports, for the purpose of Cenvat credit of input services, the place of removal ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(61)ELT 413 (Guj.) (iii) Unique Resin Industries Vs. CCE - 1995 (71)ELT 861 (T). 8. On the other hand, Shri P.K. Singh Learned Superintendent (Authorized Representative) appearing for the Revenue reiterates the finding of the impugned order and also ground of appeals related to revenue's appeal. 9. We have carefully considered the submissions made by both the sides and perused the records. We find that there is no dispute that the goods were removed for export and disputed services i.e CHA service and outward transportation service were availed by the appellant in relation to export of goods. The main issue involved in the case is whether the appellant is eligible to avail CENVAT credit on service tax paid on CHA Service and GTA service....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion in Rajasthan Spg. &Wvg. Mills Ltd. [2007 (8) S.T.R. 575]. 12. We also find that Board's Circular No. 97/8/2007-S.T. dated 23-8-2007 also recognizes the situation where the place of removal can be different from the normal place of removal and in such case, the credit of service tax paid on GTA services used for transportation of goods upto place of removal is admissible. As per Section 4(3)(c)(iii) of the Central Excise Act, 1944, place of removal' includes any other place or premises from where the excisable goods are to be sold after their clearance from the factory. As per definition of sale, a transaction is recognized as 'sale' only when a seller has realized or has a high chance of realizing payment against delivery of goods. In ....