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2019 (6) TMI 513 - AT - Service TaxCENVAT credit - input services - Haulage charges - place of removal - extended period of limitation - service tax law as made applicable to Central Excise laws - HELD THAT:- The Hon’ble Apex Court in the case of COMMISSIONER OF CENTRAL EXCISE, BELGAUM VERSUS M/S. VASAVADATTA CEMENTS LTD. [2018 (3) TMI 993 - SUPREME COURT] held that tax paid on the transportation of the final product from the place of removal upto the first point, whether it is depot for the customer, has to be allowed. In the case of COMMR. OF CUS. & C. EX., HYDERABAD-III VERSUS GREY GOLD CEMENTS LTD. [2014 (9) TMI 673 - ANDHRA PRADESH HIGH COURT] the Hon’ble High Court of Hyderabad held that Service Tax and Excise Duty are consumption taxes to be borne by the consumer and therefore if credit is denied on transportation service the levy of service tax on transportation will become a tax on business rather than being a consumption tax. The Tribunal observed that the submission of the Revenue that the CENVAT credit cannot be allowed for service if the value thereof does not form part of the value subjected to excise duty runs counter to the fundamental concept of Service Tax. Considering the fundamental concept of Service Tax, it cannot be said that Cenvat credit cannot be allowed for service if the value thereof does not form part of the value subjected to Excise duty. Appeal allowed - decided in favor of appellant.
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