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2014 (8) TMI 453 - AT - Service TaxEligibility for the CENVAT credit - outward transportation - Held that:- CENVAT Credit Rules, 2004, was amended so as to replace the words “from the place of removal” with the words “up to the place of removal” and this amendment came into effect from 1-4-2008 onwards. As a result of this amendment, the CENVAT credit in respect of outward transportation beyond the place of removal was excluded from the scope of ‘input service’. Therefore, for the period on or after 1-4-2008 CENVAT credit on outward transportation is not available. Therefore, the department is right in denying the benefit of CENVAT credit on the outward transportation incurred beyond the place of removal. Accordingly, the appellant-assessee is liable to reverse the credit of CENVAT credit taken, if any, along with interest thereon during the impugned period During the material period, as per the decision of the Larger Bench in the case of ABB Ltd. case [2009 (5) TMI 48 - CESTAT, BANGALORE], the appellant was held to be eligible for the credit which decision was reversed by the Hon’ble Karnataka High Court for the period after 1-4-2008 vide the judgment cited (2011 (1) TMI 748 - KARNATAKA HIGH COURT). Therefore, the assessee cannot be alleged to have committed either suppression or fraud in the matter and therefore, imposition of equivalent of penalty on the assessee is totally unwarranted - Assessee directed to reverse credit taken - Decided partly in favour of assessee.
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