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2022 (1) TMI 313 - AT - Central ExciseCENVAT Credit - scope of definition of input service - outward transportation of the goods - place of removal - place of buyer or factory of the appellant or not - supply of goods to buyers on FOR basis - HELD THAT:- From the definition of Input Service it becomes clear that all services received by the manufacturer directly or indirectly in relation to the manufacture of final products upto the place of removal are admissible for availment of Cenvat Credit on the Service Tax paid for such services. Accordingly, the definition of place of removal acquires importance. The Hon'ble Apex Court in the case of ESCORTS JCB LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, DELHI-II [2002 (10) TMI 96 - SUPREME COURT] has held that the place of removal has to be determined with reference to the point of “sale‟. Section 19 of Sale of Goods Act says that the “property in goods stands transferred only when it is intended to be so transferred”. In the present case, the goods are being cleared by the appellants to their buyers on FOR basis and all liabilities in respect of transportation of goods or even damage to goods were on account of the appellants/manufacturer. It is the appellants who were liable for safe delivery of goods up to their customer’s door steps. Thus, present becomes the case were the service of GTA was availed for the goods to be supplied to buyers at their door steps under FOR delivery system was taken. These admitted facts are sufficient to hold that the sale in the present case gets complete only at the door steps of buyers. It becomes clear that when the goods are cleared on FOR basis the freight paid on outward transportation would definitely qualify as input service, and thus shall be admissible for Cenvat. In present case, the buyer was retaining the right even to reject the goods with the cumulative reading of definition of place of removal under Rule 4 of Central Excise Rules with the definition of inputs as already discussed above, the buyer’s place in the present case is held to be the place of removal. Accordingly, it is held that GTA services availed by the appellant till the buyers place are eligible input service for availment of Cenvat Credit - Appeal allowed - decided in favor of appellant.
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