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2014 (7) TMI 499 - AT - Service TaxCENVAT Credit - GTA service - transportation of finished goods - scope of "input service" as defined by Rule 2(l)(i) - upto the place of removal - Held that:- Service tax is levied on the service recipient against transport service availed. The appellant was recipient of service of transport for transporting its finished goods and such service suffered tax - The Board Circular No. 97/8/2007-ST dated 23.08.2007 appears to have overrided the provision of Cenvat credit Rules granting credit of service tax paid on transport service availed at post manufacture stage for delivery of finished goods at the door stop of the customer. The definition of "input service" under Rule 2(l) of Cenvat credit Rules 2004 underwent amendment with effect from 01.04.2008 and with effect from 01.04.2011. Prior to 01.04.2011 and with effect from 01.04.2008 the said definition covered outward transportation "up to" the place of removal while the word "from" was used prior to that, in Rule 2(i) of aforesaid Rules. The appellant is different from the recipient (sister concern) of the finished goods - Prima facie, the method of accounting followed does not change the incidence of taxation. Cenvat credit being a grant of law that should be interpreted in a manner that advances object of the statute. - stay granted partly.
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