TaxTMI 
TaxTMI 
2025 (12) TMI 218
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....at the Appellant M/s Dwarikesh Sugar Industries Ltd., are engaged in manufacture of sugar and molasses and are availing CENVAT Credit on duty paid on inputs, capital goods and input services used/utilized for the manufacture of their final products. 3. During the course of the scrutiny of ER-1 Return filed for the month of March 2009, it was observed that the CENVAT Credit availed of Service Tax on the basis of invoices issued by M/s Central Warehousing Corporation, Muzaffarnagar [CWC, Muzaffarnagar] . From the documents submitted by the Assessee, it was evident that they have availed CENVAT Credit of Service Tax on input services namely 'Storage and Warehouse service' used for storage of their duty paid final product i.e. sugar in the w....
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....leared from time to time to the customers. It is his submission that since the activity was related to the business of the factory, therefore, CENVAT Credit on 'Warehousing Services' is admissible under the definition "Input Service' under Rule 2(l) of the CENVAT Credit Rules, 2004. 9. In support of his submissions he relied upon the decisions of the Tribunal in following case: a) DSCL Sugar V/s Commissioner of Central Excise, Lucknow [2014 (34) S.T.R. 58 (Tri.- Del.)]. b) Thiru Arooran Sugars Ltd. V/s Commissioner of Central Excise, Puducherry [2017 (3) G.S.T.L. 199 (Tri.-Chennai) 10. He further submitted that the period of dispute in the present case pertains to April 2007 to March 2009, when the definition of inpu....
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....l points out that Cenvat Credit Rules, 2004 does not define the expression "place of removal". However, Rule 2(p) of said rules prescribes that whichever words and expressions are not defined in the said rules but are defined in the Central Excise Act, 1944 or Finance Act, 1994 the said definition will apply for the purpose of the said rules. He invites attention to the definition to "place of removal" in Section 4 of the Central Excise Act, 1944 which reads as under:- (c) "place of removal" means - (i) a factory or any other place or premises of production or manufacture of the excisable goods; (ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without ....
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....tion to "activity relating to the business" is specifically included in the definition of input services for the entire period in dispute even though the said expression has been deleted in the year 2011. Therefore his contention is that going by the clarification issued by the C.B.E. & C. and by the decision of the Tribunal in the case of L.G. Electronics he should be entitled for services utilised by him for maintaining the storage facility at Agra and Farrukhabad. 9. Another issue which was discussed during the hearing is whether the expression "storage up to the place of removal" used in the definition of input service will cover storage at the place of removal also. It is pointed out by the counsel that whenever a notification....
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....actured by the assessee is the factory of the appellant from where the goods are cleared on payment of duty. He also argued that the expression storage up to the place of removal cannot include storage of the goods at the godowns even if the godowns are considered as place of removal. 11. I have considered arguments on both the sides. I find that the question whether the place where goods are stored after clearance from the factory on payment of duty can be considered as "place of removal" for the purpose of Rule 2(l) of Cenvat Credit Rules, 2004 is no longer res integra because of the clarification issued by the C.B.E. & C. in the matter and approved by the decision of the Tribunal in the case of L.G. Electronics (supra) and the d....
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....t of service tax so paid. 2. Revenue says that godown is not a place of removal. Therefore, there should be denial of Cenvat credit. 3. It does not appeal to common sense how Cenvat credit is impermissible when storage of the goods was made in hired godowns. That has direct nexus to the manufacturer to remove congestion in the factory. Therefore such integral connection does not call for denial of the Cenvat credit of the service tax paid on rent paid to avail godown facility. Accordingly, appeal is allowed." 16. I find that the facts of the present case are squarely covered by the above decisions of the Tribunal and there is no reason to take a different view. 17. It is my considered view that the role of the Depart....