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2018 (2) TMI 285

Head Note:
CENVAT credit - input services - service tax paid on goods that are transported to the purchaser after the sale - place of removal - whether the expression ‘input service’ as defined in Rule 2(l) of the CCR, 2004, in the context of a service provider, would also include services which are used in or in relation to providing taxation output services described in the definition and the outward transportation to the purchaser would be treated as beyond the ‘place of removal’?

Held that: - As per the definition of ‘input service’ that was prevailing at the relevant time i.e. prior to April 1, 2008, service used by the manufacturer of clearance of final products ‘from the place of removal’ to the warehouse or customer’s place etc., was exigible for Cenvat Credit - The matter is squarely covered by the Board’s Circular dated August 23, 2007, which states that the credit of the service tax paid on the transportation up to such place of sale would be admissible if it can be established by the claimant of such credit that the sale and the transfer of property in goods occurred at the said place.

Once it is accepted that place of removal is the factory premises of the assessee, outward transportation ‘from the said place’ would clearly amount to input service. That place can be warehouse of the manufacturer or it can be customer’s place if from the place of removal the goods are directly dispatched to the place of the customer. One such outbound transportation from the place of removal gets covered by the definition of input service.

Appeal dismissed - decided against Revenue.

 


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