TaxTMI 
TaxTMI 
2026 (5) TMI 637
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....ade in the Show Cause Notice dated 07.09.2018 [SCN] issued to the appellant. The appellant manufactures cement and clinker and is registered with the central excise department. It avails the benefit of Cenvat Credit under the CENVAT Credit Rules, 2004 [CCR] and clears the finished goods (Cement and clinker) from factory as well as from depots. During audit, it appeared that during the period March, 2016 to June, 2017 the appellant had availed the inadmissible CENVAT credit of Rules of Rs. 15,35,81,360/- of service tax paid on outward transportation goods from the premises of the appellant ( factory gate or depots) to the customers' premises. Accordingly, the SCN was issued to the appellant proposing to recover CENVAT credit of Rs. 15,....
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....er units. He also imposed a penalty of Rs. 70,00,000/- on the appellant under rule 15 (1) of CENVAT credit Rules, 2004 read with Section 11AC (i)(A) of the Central Excise Act, 1944. 4. We have heard learned counsel for the appellant and the learned authorized representative appearing for the Revenue and perused the records. 5. At the heart of this dispute is the question of "place of removal". This expression has been used in the Central Excise Act, 1944 [Act], in Section 4, Explanation VI, clause (ii) and(c), for the purposes of determining the value of of the goods for central excise purpose. Under CCR this expression has been used to determine the eligibility of CENVAT credit for transportation of the goods. 6. As per Section 4 ....
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....place of its sister units. If the factory gate of the appellant is treated as the place of removal, no CENVAT credit can be allowed for transporting the goods at the factory gate to the place of its sister units. The value of transporting the goods from the factory gate to its sister units also does not have to be included in the value of the goods for paying central excise duty. 9. On the other hand, if the appellant had treated the place of its sister units as the place of destination then it would be entitled to take CENVAT credit of the service tax paid on GTA services for transporting the goods up to its sister units. Conversely, the cost of transportation the goods from its place to the place of its sister unit also has to be inclu....
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.... included the amount of CENVAT credit paid on transporting the clinker to its sister units. In response, the appellant submitted its defence arguing that the place of removal was the destination and, therefore, it was entitled to CENVAT credit. It is necessary to consider this submission. It is correct insofar as the goods sold on FOR destination basis is concerned. The decision of the Larger Bench in this regard was based on the decision of the Supreme Court in the case of CCE, vs. Roofit Industries- 2015 (319) ELT 221, in which the Supreme Court held that in the case of FOR destination sale where the ownership and risk in transit remains with the seller till the goods are accepted by the buyer on delivery. Until such time of delivery, the....
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.... ============= Document 1 SHREE CEMENT LIMITED HAS. TALINA-JAITRAN, , RANGUR CITY-, RJ 19688 22/06/2016 ERCHE CHALLAN CUM INVOICE to LAIK3. TRANSFER CIN :- 1-26943831979P10001935 ENTRAL EXCISE COMMISSIONERATE for&aa hosdig52310001 VIA ROAD RAL Km: 690 STATION Tecoce Delwery af Shree Cement. Limited Shree Coment. Limited (CEMENT GRINDING UNIT), VILLA AKBARFOR CED, FOC: ANIS87960336KG, , AKBARFUR CET) Brisathe Commodity (3 1NKETI BO No. & Date 2016005507 31-MAY-16 CLINKER PO No. & Date 00 11513469 DI Na. & Date 21/06/16 To Be Billed Packing Quantity In MT Quantity in Bags MHP [Per Bag) E reise LOOSE 38 360 0 0 QUITY E reise Exemption Comfeste Se ....