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2020 (1) TMI 323 - AT - Central ExciseCENVAT Credit - scope of SCN - input services - airfreight - Commissioner(Appeals) decided the issue after 12 years - HELD THAT:- The appellant which is a PSU have availed CENVAT credit on outward freight which falls under the definition of input service prior to the amendment in the definition of input service effected from 01/04/2008. Further, the appeal before the Commissioner(Appeals) was filed in 2007 and the Commissioner(Appeals) after 12 years has given the personal hearing and decided the appeal and has denied the CENVAT credit on air freight and remanded the matter for quantification of the amount relating to airfreight. In view of the decision of the Hon’ble Madras High Court in the case of M/S. J.M. BAXI & CO. VERSUS THE GOVERNMENT OF INDIA [2016 (6) TMI 813 - MADRAS HIGH COURT] and the Apex Court decision in the case of GOVERNMENT OF INDIA VERSUS CITEDAL FINE PHARMACEUTICALS [1989 (7) TMI 100 - SUPREME COURT], the adjudication by the Commissioner(Appeals) is bad in law as the Commissioner(Appeals) has not given any finding for taking the decision after 12 years and the same has caused prejudice. Scope of SCN - HELD THAT:- It is found that the Commissioner(Appeals) has gone beyond the show-cause notice. The show-cause notice was issued alleging that outward freight is not included in the input service whereas in the impugned order the Commissioner(Appeals) has held that the place of removal cannot be beyond the port/ICD/CFS. In fact, this is beyond the show-cause notice. Credit allowed - appeal allowed - decided in favor of appellant.
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