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TMI Blog2013 (11) TMI 1506X X X X Extracts X X X X X X X X Extracts X X X X ..... ases, the value of services charged was inclusive of the value of transportation of the tyres from the premises of the service receiver to the applicant's premises and back. Service tax was paid on such value. The appellant also paid service tax on the transportation of goods as receiver of the service under reverse charge mechanism and took Cenvat credit of such tax paid and utilized such Cenvat credit while discharging tax liability on re-treading of tyres. Revenue was of the view that Cenvat credit taken on tax paid under the category of Goods Transport Agency service cannot be allowed because it is not covered by the definition of 'input service' as defined in rule 2(l) of CENVAT Credit Rules, 2004. Based on such reasoning, show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isable goods but a provider of output service. For providing output service, there is no concept of 'place of removal' and therefore the criteria with reference to place of removal cannot be accepted. He submits that service has got very close nexus with the output service and he could not have discharged his responsibility under the service contract without transportation of goods. Therefore, he prays that Cenvat credit may be allowed. 4. Opposing the prayer, Ld. AR for Revenue reiterates the finding in the order of the Commissioner (Appeals). He relies on the decision in the case of Madras Cement Vs CCE Bangalore -2012 (27) STR 470 (Tri.). The Tribunal after taking into consideration the decision of Hon. Karnataka High Court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be restored. 6. I have considered the arguments on both sides. I am in agreement with the argument of Ld. Advocate for the appellant that any test with reference to 'place of removal' cannot be applied in the case of output service because said expression is defined in Central Excise Act and has relevance for the purpose of paying excise duty. In the case of services which are intangible, place of removal cannot be determined easily and the expression 'place of removal' defined in Central Excise Act for determining excise duty payable cannot apply. I am also not in agreement with the argument that transportation of tyres to and fro from the place of repair has no nexus with the output service because the service is undertaken as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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