2015 (7) TMI 1001 - KARNATAKA HIGH COURT

Denial of CENVAT Credit - Input service - Place of removal - Whether the Tribunal was correct in disallowing CENVAT credit of service tax paid on the GTA service which is availed by the manufacturer on outward transport from the place of removal for the period after 31.03.2008 subsequent to the amendment of definition of "input service" under Rule 2(l)(ii) of CENVAT Credit Rules - Held that:- As long as the sale of the goods is finalized at the destination, which is at the door step of the buyer, the change in definition of 'input service' which came into effect from 01.04.2008 would not make any difference. A perusal of invoices makes it clear that the goods were to be delivered and sale completed at the address of the buyer and no additional charge was levied by the assessee for such delivery. From these facts it is clear that the sale was completed only when the goods were received by the buyer.

Since we are of the opinion that the sale had concluded only after the delivery of the goods was made at the address of the buyer, in the facts of the present case assessee would be entitled to the benefit of CENVAT credit on Service Tax paid on outward transportation of goods by the assessee even after 01.04.2008. The appellant-assessee would thus be entitled to such benefit for the period 01.04.2008 to 31.07.2008 which has been denied to it by the authorities below. - Decided in favour of assessee.