TMI Blog2018 (9) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... os: E/31186/2017 & E/30055/2018 - A/31068-31069/2018 - Dated:- 28-8-2018 - Mr. P. Venkata Subba Rao, Member (Technical) Shri G. Prahlad, Advocate for the Appellant. Shri Bhanu Kiran, Asst. Commissioner/AR for the Respondent. ORDER [Order per: P.V. Subba Rao.] 1. These two appeals involve a similar issue and are being disposed of together by a common order. 2. The appellant is a manufacturer of sugar and they stored sugar in godowns outside the factory premises, after paying duty on the same because the place in the factory was not sufficient. Thereafter the appellant had sold the sugar from these godowns. The godowns in question were hired by the appellant and service tax on renting of immovable property was pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these godowns. The original authority held that the use of input service must be integrally connected with the manufacture of final product and there must be nexus with the process of the manufacture. He held that in this case, the renting of immovable property services are utilized beyond the factory gate after removal of goods and does not qualify for entitlement of credit. He therefore confirmed the demand along with interest and also imposed a penalty under Rule 15(2) of the CENVAT Credit Rules, 2004 read with Sec.11AC of the Act. This position of the original authority was upheld by the first appellate authority. Learned Counsel submits that the definition of place of removal should be considered before deciding the entitlement of CENV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR-167-Tri.-Delhi] in which it was held that motor vehicles manufactured and sold to buyer through the depots situated outside factory premises and the depots were treated as the place of removal. 3) Thiru Arooran Sugars Ltd [2017-3-GSTL-199-Tri.-Chennai] in which CENVAT credit was allowed on the godowns hired to store duty paid sugar outside the factory premises. 4. Learned Departmental Representative vehemently opposed the appeal and submitted that for an input service to be eligible for credit, there should be nexus with the manufacture, in addition to the place of removal being covered by the definition given under Central Excise Act. The nexus is broken because the manufacture is complete and the duty has been paid when the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
