2023 (12) TMI 841

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....R) for the respondent ORDER PER : C J MATHEW M/s LG Electronics India Pvt Ltd are in appeal before us challenging the disallowance of credit of tax amounting to Rs. 9,77,32,045/- for the period from June 2010 to March 2015 and Rs. 2,42,65,251/- for the period from April 2015 to December 2015 paid on 'goods transport agency service' and other services related to 'storage and warehousing' of goods after clearance from the factory of production. Two individuals are also in appeal owing to the penalties imposed on them under rule 15 of CENVAT Credit Rules, 2004. 2. The appellant-company is in the business of manufacture of 'refrigerators', 'air-conditioners', 'colour monitor', 'LCD television' and 'plasma television' and had been av....

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....ly. 5. Learned Counsel for the appellant submitted that the terms of dispatch included 'free on road (FOR)' to premises of distributor and, therefore, all expenditure on services, being includable in the assessable value, would necessarily permit all tax on such services utilized by them till arrival at the premises of the distributor to be eligible for availment as credit. Besides, relying upon circular no. 6/15/2007-CX.I dated 30th April 2009 and circular no. 354/30/2005-TRU dated 6th September 2005 of Central Board of Excise & Customs (CBEC), it was also contended by the Learned Counsel that the adjudicating authority had failed to take note of the terms and conditions which govern the movement of goods. Reliance was placed on the dec....

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....as attributable to expenses beyond the 'place of removal' at factory. It was his submission that, in view of such abatement, it was not open to the appellant to claim that credit should be allowed even where the duty liability did not extend to such expenditure. 7. We find from the records that the adjudicating authority has examined the definition of 'excisable goods' and 'place of removal' in Central Excise Act, 1944. It is worth noting that 'place of removal' is relevant only for the purpose of determination of 'transaction value' in section 4 of Central Excise Act, 1944. Furthermore, 'place of removal' is a concept which enables duty leviable on manufacture to be restricted to such value as is attributable to cost involved in product....