2018 (3) TMI 993 - SUPREME COURT

CENVAT credit - Input service - GTA - goods transport agency service availed for transport of goods from the place of removal to depots or the buyers premises - interpretation of statute - input service which is defined in Rule 2(l) of the CENVAT Credit Rules, 2004 - Held that: - the expression used in the aforesaid Rule is “from the place of removal”. It has to be from the place of removal upto a certain point. Therefore, tax paid on the transportation of the final product from the place of removal upto the first point, whether it is depot or the customer, has to be allowed.

Our view gets support from the amendment which has been carried out by the rule making authority w.e.f. 01.04.2008 vide N/N. 10/2008CE(NT) dated 01.03.2008 whereby the aforesaid expression “from the place of removal” is substituted by “upto the place of removal”. Thus from 01.04.2008, with the aforesaid amendment, the CENVAT credit is available only upto the place of removal whereas as per the amended Rule from the place of removal which has to be upto either the place of depot or the place of customer, as the case may be.

Appeal dismissed - decided against Revenue.