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2011 (11) TMI 251 - AT - Service TaxCenvat Credit of service tax paid on GTA for disposal of by product - transportation of Press Mud and Ash, byproduct to the fields of farmers – Revenue contention that it is not an input in or in relation to manufacture - it is a post removal activity - Held that:- Both Press Mud and Ash are of no use to the appellant and these are required to be disposed of. In the absence of any sale, it will not be appropriate to say that this is an activity beyond the place of removal. Moreover, Press Mud and Ash are used by farmers, who supplied the sugarcane for manufacture of sugar. If this is the case, sugarcane is definitely is a raw material for sugar and Press Mud and Ash are used as manure for growing sugarcane and therefore utilization of Press Mud and Ash are used for production of raw material which can be definitely said to be related to manufacture itself. Therefore, the respondents are eligible for CENVAT Credit. - Decided against the Revenue
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