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2015 (8) TMI 1180 - AT - Central ExciseDenial of CENVAT Credit - Determination of place of removal - Inclusion of freight - Held that:- High Court of Madras in the cases of CCE, Chennai Vs. M/s. Borg Warner Morse TEC Murugappa Pvt. Ltd. (2015 (4) TMI 254 - MADRAS HIGH COURT), has relied on the decision of the Hon’ble Karnataka High Court in the case of CCE, Bangalore Vs. ABB Ltd. [2011 (3) TMI 248 - KARNATAKA HIGH COURT] which was rendered on the appeal filed by the Department as against the decision of the Larger Bench of the Tribunal and it was held that whether services availed by the manufacturer of outward transportation of final products from the place of removal should be treated as an input service in terms of Rule 2(l)(ii) of the CENVAT Credit Rules, 2004 and thereby enabling the manufacturer to take credit of the service tax on the value of such services. - in view of the decisions of the Hon’ble High Courts, it is clear that CENVAT credit can be availed for the outward transportation upto the place of removal. The Board s Circular has elaborately dealt with the issue of determination of place of removal and as per the terms of the purchase order delivery is upto the place of destination and freight was paid by the appellants, they are eligible for availing input service credit on outward transportation. - Impugned order is set aside - Decided in favour of assessee.
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