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2016 (11) TMI 819 - AT - Central ExciseCenvat credit - Cryogenic Tank - whether the central excise duty or service tax is discharged on the cost charged for use of such tanks from the customers. If the answer is in affirmative, the cenvat credit of duty paid on such tank is to be extended - Held that: - The appellants have charged separate amount from the customers for transporting Nitrogen and Oxygen in the Cryogenic Tanks and Central Excise duty is discharged on such cost collected from the customers for transporting the goods in the Cryogenic Tank designed for such storage and transportation. In the instant case, there is no dispute that appellants have paid Central Excise duty on the cost of transportation charged for the use of Cryogenic Tank and therefore the appellants are entitled for the cenvat credit of duty paid on the Cryogenic Tanks. The very same principle has been upheld in the case of Inox Air Products Ltd. Vs CCE Nagpur [2009 (7) TMI 129 - CESTAT, MUMBAI] wherein the cenvat credit of the service tax paid for GTA service availed by the assessee for outward transportation of the final product from factory to the buyers’ premises was held to be admissible to them. In that case, appellant transported liquefied gases (final product) from their factory to buyers’ premises. Since the gases were to be maintained in liquid form at sub-zero temperatures, cryogenic tanks were used for their storage. These cryogenic tanks containing liquefied gases were mounted on goods transport vehicles belonging to GTA who transported the goods from the factory to the buyer’ premises. The freight for the transportation of the goods was paid by the appellant and this amount was included in the assessable value of the goods for the purpose of payment of duty. The appellants are entitled for capital goods credit on the cryogenic tank used for transporting the liquefied gases as provider of output service - appeal allowed.
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