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2014 (6) TMI 33 - AT - Service TaxCENVAT Credit - GTA Service - Place of removal - Whether the appellant, could utilize CENVAT Credit for discharging its service tax liability on GTA service received in respect of inward transportation of inputs for the period from October 2005 to September 2006 beyond place of removal - Held that:- By the amendment made with effect from 1st April, 2008 substituting the word ‘from’ by the word ‘upto’ all that has been done is to clarify the issue. Neither the services rendered to the customer for the purpose of delivering the goods at the destination was covered by the definition of input service prior to 1st April, 2008, nor is the same covered after 1st April, 2008. If the definition provided in Section 2(l)(ii) is read a whole, if would appear that outward transportation charges or taxes paid in regard thereto is claimable only with regard to those transports which were made from one place of removal to another place of removal. Therefore, it is held that the CENVAT Credit of service tax paid by the appellant on GTA service received in respect outward transportation of finished goods beyond the place of removal is not admissible to them. The lower authorities have thus correctly disallowed the credit of ₹ 5,02,949/- along with appropriate interest. On the aspect of imposition of penalties on the appellant on the second issue, I set aside the penalty of ₹ 1,00,000/- imposed upon the appellant under Rule 15(1) of the CENVAT Credit Rules, 2004 as the issue involved was one of interpretation of definition of ‘input service’ under Rule 2(l) of the CENVAT Credit Rules, 2004 and was under litigation - Commissioner of Central Excise, Kolkata-VI Vs. Vesuvious India Limited [2013 (12) TMI 1025 - CALCUTTA HIGH COURT] - Decided partly in favour of assessee.
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