TaxTMI 
TaxTMI 
2026 (7) TMI 1934
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....ound that the appellant is not eligible to take cenvat credit. The first show-cause notice dated 03.12.2008 was issued for Rs.41,28,494/- for the period November 2007 to March 2008 based on the freight charges paid at the factory premises for the "outward transport to the customers' premises directly". The second show-cause notice dated 22.04.2010 was issued for Rs.33,26,253/- for the period "from April 2007 to March 2008 in respect of goods cleared from factory premises to the customers' premises" and "depot to customers' premises". After due process, the adjudicating authority has confirmed the demand. On appeal, the Commissioner (A) has affirmed the same. Being aggrieved, the appellant is before this Tribunal. 2. The learned counsel a....
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.... providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs....
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....es. Apart from this, we also find that the Larger Bench in the case of ABB Ltd. vs. CCE & ST, Bangalore: 2009 (15) S.T.R. 23 (Tri.-LB) held as under: "15. We also note that transportation of goods to customer's premises is an activity relating to business. It is an integral part of the business of a manufacturer to transport and deliver goods manufactured. If services like advertising, market and research which are undertaken to attract a customer to buy goods of a manufacturer are eligible to credit, services which ensure physical availability of goods to the customer, i.e., services for transportation should also be eligible to credit. 16. According to the Revenue, the inclusive clause in specifically limiting the credit....
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....e chits but under different names. This decision, however, is not applicable for the purpose of interpreting the definition of "input services" which contains both the expressions "means" and "includes". 17. In this view of the matter, the use of the expression 'outward transportation' in the inclusive clause of the definition is by way of abundant caution so as to avoid any dispute being raised on the "means clause" (which refers to clearance from the place of removal), that transportation upto the place of removal is not available as credit. Transportation within a factory would be covered by the inclusive clause. However, where depot is a place of removal, freight from depot to customer's premises would be covered by the means c....
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....val. When these two clauses are read together, it becomes clear that transport service credit cannot go beyond transport up to the place of removal. The two clauses, one dealing with general provision and another dealing with a specific item, are not to be read disjunctively as to bring about conflict and to defeat the laws scheme. The purpose of interpretation is to find harmony and reconciliation among the various provisions'. Giving effect to the said judgment, when the circular was issued by the Board dated 23-8-2007 the circular came up for consideration before the Punjab and Haryana High Court where it was held that when the ownership of the goods and the property remain with the seller of the goods till the delivery of goods in accep....