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2019 (7) TMI 1808 - CESTAT CHENNAICENVAT Credit - input services - freight paid for outward transportation of goods upto the depot of the principal manufacturer - place of removal - period Dec.’14, Feb.’15 and Mar.’15 - HELD THAT:- It is not in dispute that the appellants are contract manufacturing units of M/s. Parle. They are manufacturing the goods as per Notification No.36/2001. The goods are delivered to the depots of M/s. Parle and also in some cases to the customer’s premises as per direction of M/s. Parle. The show-cause notice has been issued mainly alleging that the freight charges are seen to be paid by M/s. Parle. The department does not have a case that M/s. Parle has availed credit of the service tax paid on the freight charges. The challans for payment of service tax for GTA/outward transportation upto the place of removal, is issued in the name of the appellant. From these documents it is very much clear that the freight charges have been borne by the appellant and has been included in the assessable value. In such circumstances, as per the decision of the Hon’ble Apex Court in the case of COMMISSIONER, CUSTOMS AND CENTRAL EXCISE, AURANGABAD VERSUS M/S ROOFIT INDUSTRIES LTD. [2015 (4) TMI 857 - SUPREME COURT], the place of removal will be depot or the buyer’s premises. Then the credit on outward transportation upto the place of removal will be eligible. The disallowance of credit is unjustified - appeal allowed - decided in favor of appellant.
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