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2017 (5) TMI 1647 - AT - Service TaxCENVAT Credit - outward freight for the purpose of transportation of their finished goods from their factory to customers as well as from depots to customers - Held that:- There were divergent views of different High Courts on the eligibility of cenvat credit on outward transport of goods from the place of removal upto the customer’s premises or the depots as the case may be - The present issue has been finally settled by the judgement of the Hon’ble Supreme Court in the case of Vasavadatta Cements Ltd.[2018 (3) TMI 993 - SUPREME COURT], where it was held that from 01.04.2008, with the aforesaid amendment, the CENVAT credit is available only upto the place of removal whereas as per the amended Rule from the place of removal which has to be upto either the place of depot or the place of customer. Extended period of limitation - Held that:- As the Tribunal, the Hon’ble High Courts and the Hon’ble Supreme Court expressed different views at different stages on this issue, which was critical to decide the issue involved therein, the Apex Court decided that the extended period of limitation could not be invoked. Penalties - Held that:- There was scope for the assessee to entertain the bonafide belief that the cenvat credit on the service tax paid on outward transportation up to the place of removal was available to them - the penalties imposed under Rule 15(3) of the Cenvat Credit Rules, 2004, are not warranted. Appeal allowed in part.
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