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2016 (5) TMI 781 - AT - Central ExciseAdmissibility of Cenvat credit - Job-work - GTA service tax paid when goods are manufactured by the job worker and cleared on payment of duty from the factory premises of job worker - Cenvat credit taken by the Respondent for the freight paid by them upto the factory premises of job worker while sending raw materials and also freight charges paid by Respondent from the job workers to the Depots of the Respondent while sending finished goods. Held that:- premises of job worker is the “place of removal” and not the depot of the principal manufacturer, therefore, Cenvat credit of service tax paid by the Respondent upto the place of removal will be admissible. At the same time, service tax paid by the Respondent for transportation of goods from the job workers premises (place of removal) to the Depots of the Respondent has to be treated as services availed beyond the place of removal as there cannot be two manufacturers and two place of removals for the same goods. Demand - Invokation of extended period of limitation - Rule-14 of CCR, 2004 read with proviso to section 11A(1) of the Central Excise Act, 1944 - Held that:- the matter is of interpretation of provisions of CCR, when a part of the service tax credit has been held to be admissible to the Respondent, therefore, extended period of 5 years cannot be invoked and demand has to be restricted to the normal period of limitation with respect to CENVAT Credit availed by the Respondent for transportation services availed from the factory premises of the job worker to the depot of the Respondents. Also the penalty imposed upon the Respondent under Rule 15(2) of CCR, 2004 read with Section 11AC ibid is not substantiable and is set aside. - Decided partly in favour of revenue
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