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2023 (12) TMI 841 - CESTAT MUMBAIDisallowance of credit - goods transport agency service - other services related to ‘storage and warehousing’ of goods after clearance from the factory of production - Penalty u/r 15 of CENVAT Credit Rules, 2004 - HELD THAT:- It is found from the records that the adjudicating authority has examined the definition of ‘excisable goods’ and ‘place of removal’ in Central Excise Act, 1944. It is worth noting that ‘place of removal’ is relevant only for the purpose of determination of ‘transaction value’ in section 4 of Central Excise Act, 1944. Furthermore, ‘place of removal’ is a concept which enables duty leviable on manufacture to be restricted to such value as is attributable to cost involved in production and clearance from the factory but which, nevertheless, includes such expenses when such sale occurs at a further point. There is no doubt that the goods removed by the appellant are subject to assessment at value declared as ‘retail selling price’ subject to abatement. The amendment effected in rule 2(l) of CENVAT Credit Rules, 2004 enabling ‘goods transport agency service’ to be availed of till ‘place of removal’ and the consequential decision of the Hon’ble High Court of Karnataka affirmed by the Hon’ble Supreme Court in Commissioner of Central Excise, Belgaum v. Vasavadatta Cements Ltd [2018 (3) TMI 993 - SUPREME COURT] did not exclude the possibility of such outward transport – included in the assessable value – from being eligible for availment of credit when circumstances so warranted. Evaluation of the submissions of the appellant on this score had not been undertaken by the original authority. Impugned order set aside - matter remanded to the original authority for a fresh decision keeping all issues open - appeal allowed by way of remand.
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