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2015 (6) TMI 126 - AT - Service TaxDenial of CENVAT Credit - Whether the appellant would be eligible for Cenvat credit of Service Tax paid on the GTA service availed for transportation of the biscuits from their factory to the depot of M/s. Parle Biscuits - Held that:- In view of the Tribunal’s judgment in the case of Ultratech Cement Ltd. v. CCE, Chandigarh/Raipur (2014 (3) TMI 159 - CESTAT NEW DELHI), since in this case the assessable value of the goods was being determined not under Section 4 but under Section 4A of the Central Excise Act, 1944, the definition of “place of removal” as given in Section 4(3)(c) cannot be adopted for the purpose of Cenvat Credit Rules, 2004 and accordingly it is the factory gate which would be the place of removal. Moreover, even if the definition of “place of removal” as given in Section 4(3)(c) is treated as applicable to the cases where the duty on the finished goods is payable on the value determined under Section 4A, even then, the depot of M/s. Parle Biscuits cannot be treated as “place of removal” in respect of the goods manufactured by the appellant as the, “place of removal” defined in Section 4(3)(c) is the place of removal for the manufacturer of the goods and in case, the manufacturer after clearing the goods from the factory to his depots [clears] all the goods from those depots, it is those depots which would be the place of removal. However, when the manufacturer clears the goods to the depots of some other persons, those depots cannot be treated as “place of removal” for the manufacturer, unless the sales are on FOR destination basis. “Place of removal” in this case is factory gate of the appellant, and not the depot of M/s. Parle Biscuits. In view of this, we hold that the Cenvat credit of the service tax paid on the GTA services availed for transportation of goods from the factory of the appellant to the depot of M/s. Parle Biscuits has been correctly denied - Cenvat credit demand has been correctly upheld along with interest. - Decided against assessee.
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