Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 706 - AT - Central ExciseDenial of CENVAT Credit - whether, outward freight charges paid by the appellant for transportation of goods to its buyers premises should be considered as input service , defined under Rule 2(l) of the Cenvat Credit Rules, 2004 and whether service tax paid on the freight charges is admissible to the appellant as cenvat credit - Held that:- Invoices issued by the appellant clearly depict that the freight has been separately charged in the said invoices which is forming the part of overall sale price and also the certificates issued by the buyer of the goods by the practicing Chartered Accountant, clearly demonstrate that the ownership of the goods remained with the seller (appellant herein) till the same is delivered at the buyer’s end. Since the certificates were issued upon proper verification of the records/ documents, the same have the evidentiary value. Further the documents available in the file transpire that the appellant borne the risk or loss or damage to the goods during transit to the destination and also the freight charges mentioned in the invoices issued by the appellant were an integral part of the price of goods. Since, the conditions enumerated in the Circular dated 23.08.2007 have been duly complied with by the appellant, I am of the considered view that the freight charges incurred for transportation of goods up to the buyers premises should be considered as input service after amendment of the provisions of Rule 2(l) w.e.f. 01.04.2008 - principles enunciated are that outward transportation service utilized by the manufacturer for transportation of finished goods from the place of removal up to the premises of the purchaser is covered within the definition of input service. - Impugned order is set aside - Decided in favour of assessee.
|