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2019 (1) TMI 170 - AT - Central ExciseCENVAT Credit - outward freight services - Department entertained a view that in view of the Circular dated 23.8.2007, since the outward freight charges do not form an integral part of the price of the goods, the appellant is not eligible to avail and utilize the credit of service tax paid on freight. Held that:- The appellants as per the contracts entered into with their customers, they are supplying the goods on FOR basis and are availing the credit of the service tax paid on the GTA services to the extent that such services are used for transportation of goods to the customer premises - vide various circulars issued in 2007, 2014, 2015 by the Board, the Board has clarified that the place where the sale takes place is the place of removal because the property in goods passes at the place of the buyer. There were decisions which have specifically held that the place of removal needs to be ascertained in terms of provisions of Central Excise Act, 1944 read with provisions of Sale of Goods Act, 1930 and the terms of contract between the parties - thus, the appellant is not entitled to CENVAT credit on GTA services. Penalty - Held that:- Since the issue relates to interpretation of the definition of ‘input service’, therefore, suppression cannot be alleged against the appellant and penalty cannot be imposed. Appeal dismissed - decided against appellant.
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