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2022 (5) TMI 904 - CESTAT CHENNAICENVAT Credit - input services - freight charges for the outward transportation of finished products upto the buyers’ premises as well as the dealers - place of removal - HELD THAT:- From the definition of input service, it can be seen that prior to 1.4.2008, in sub-clause (ii) any service used by the manufacturer whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, will fall within the definition of input service - After 1.4.2008, the definition has been amended so that any service used for clearance of final products upto the place of removal will fall within the definition of input service. The department has taken a view that outward transportation of the goods is a post-sale expenditure and thus is an activity after manufacture. That therefore the credit in relation to the outward transportation of finished products upto the buyers’ premises / dealer’s premises is not eligible. In all these appeals the period of dispute is prior to 1.4.2008. The Hon'ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE, BELGAUM VERSUS M/S. VASAVADATTA CEMENTS LTD. [2018 (3) TMI 993 - SUPREME COURT] had considered the very same issue and held that the expression used in the definition 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 products from the place of removal upto the that point whether it is depot or the customers’ premises has to be allowed. It was further held that the amendment carried out in the definition with effect from 1.4.2008 substituted the words “from the place of removal” with “upto the place of removal”. Thus, from 1.4.2008, CENVAT credit would be available upto the place of removal. The credit on outward transportation from the place of removal upto the buyers’ premises / dealers for period upto 31.03.2008 is eligible - Appeal allowed - decided in favor of appellant.
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