TaxTMI 
TaxTMI 
2026 (8) TMI 915
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.... CENVAT Credit for the Service Tax paid on outward freight charges during the period 2005-06 to 2007-08. On the ground that taking the credit of CENVAT Credit is not proper a Show Cause Notice was issued to the appellant on 19th March 2010. The appellant made their submissions both on merits as well as on account of time bar. After due process, the lower authorities have confirmed the demand. Therefore, the appellant is before the Tribunal. 2. The appellant in the grounds of appeal has submitted that the outward freight charge is a service which is related to their business and the same is an input service as per Rule 2(l) of Cenvat Credit Rules, 2004. At the time of taking the credit till 31.03.2008, CENVAT Credit was allowed to be take....
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....ly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, 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, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal"; 8. From the above definition, it can be seen ....
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....inition of the term "prize chit" in the Reserve Bank of India v. Peerless General Finance and Investment Co. Ltd. case reported in AIR 1987 SC 1023, the apex court was interpreting the definition of the term "prize chit" which was defined only exclusively, for the purpose of examining whether the endowment scheme piloted by the company fall within the definition of "prize chit" which was banned under Section 3 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The Supreme Court held that the word "includes" was intended not to extend the meaning of 'prize chit' but to cover the transaction or arrangements of nature of prize chits but under different names. This decision, however, is not applicable for the purpose of inter....
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.....) COMMR. OF CUS. & C. EX., HYDERABAD-III Vs GREY GOLD CEMENTS LTD. 3. The primary authority - the Assistant Commissioner of Customs and Central Excise disallowed the manufacturer's claim for input tax credit, on the transportation of goods to customers premises to the extent of the component of service tax paid on such transportation of goods beyond the place of removal i.e., on clearances of their final products effected to Government Institutions and individual customers at factory gate during the period in question. In appeals preferred, the Commissioner (Appeals) relying on the Board Circular (bearing reference F.No. 137/3/2006-CX.4, dated 2-2-2006) allowed the appeals. The appellate authority held that in case of depot sales ....
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.... authority; and referred to OECD guidelines. The Tribunal also relied on observations of the Supreme Court in All India Federation of Tax Practitioners v. Union of India - 2007 (7) S.T.R. 625 (S.C.). The Supreme Court observed that Service Tax and Excise duty are consumption taxes to be borne by the consumer and therefore if credit is denied on transportation service the levy of service tax on transportation will become a tax on business rather than being a consumption tax. The Tribunal observed that the submission of the Revenue that the CENVAT credit cannot be allowed for service if the value thereof does not form part of the value subjected to excise duty runs counter to the fundamental concept of Service Tax laid down in All India Feder....