TMI Blog2015 (5) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision in the case of Commissioner of Central Excise, Ahmedabad-II Vs Cadila Healthcare Ltd. [2013 (1) TMI 304 - GUJARAT HIGH COURT] followed - Decided in favour of assessee. - E/147/2008 - - - Dated:- 19-2-2015 - R. Periasami, Member (T),J. For the Petitioner : Mr Panchanathan, Adv. For the Respondent : Mr M Rammohan Rao, DC (AR) ORDER Per: R Periasami: The brief facts of the case are as under:- The appellants are engaged in the manufacture of Motor Vehicle parts and accessories. Appellants availed Cenvat credit of service tax paid on the invoices raised by the C F agents. The Adjudicating authority disallowed the Cenvat credit and confirmed the demand of ₹ 23,84,412/- and also penalty of ₹ 5,00,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative, who reiterates the findings of both the lower authorities. Appellants are not eligible for the input service credit availed on the GTA Outward Transport service as place of removal is beyond the factory and GTA is normally input service for the manufacture. In this regard, he relied on the following decisions:- Commissioner of Central Excise, Kolkata-IV Vs M/s. Vesuvious India Ltd. reported in 2014 (34) S.T.R. 26 (Cal.). India Japan Lighting Pvt. Ltd. Vs Commissioner reported in 2013 (288) E.L.T.A23 (Mad.). India Japan Lighting Pvt. Ltd. Vs Commissioner of Central Excise, Chennai reported in 2007 (218) E.L.T.103 (Tri.-Chennai). 4. Heard both sides and perused the records. 5. The short issue on this present appeal relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were in relation to sales promotion and, therefore, input service. The adjudicating authority after considering the definition of clearing and forwarding agent as defined under Section 65(25) of the Finance Act, 1994 found that the contention that the services rendered as C F agents were in relation to sales promotion was not acceptable. The assessee in its reply had stated that CENVAT credit availed by it was towards C F services provided by various C F agents in different states in India for activities related to sale of goods in domestic market. The adjudicating authority was of the view that the role of C F agent here is in the sale of goods as admitted by the assessee. Such service would commence only after clearance of final p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The goods are sold from the premises of the C F agents. Accordingly, in these cases the place of removal is the premises of the C F agents. As per Section 4(3)(iii) of the Central Excise Act, where goods are sold from the premises of the consignment agent or any other place or premises after clearance from the factory, such premises from where the goods are sold is the place of removal. The services of the C F agents are, therefore, received for clearance of goods at the place of removal. The same is, therefore, input service in terms of the means potion of the definition. (iii) In the backdrop of the above facts and contentions reference may be made to the definition of clearing and forwarding agent as defined under Section 65(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmitted to be deposited without payment of duty; (iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory. from where such goods are removed. (vi) Thus, the clearing and forwarding agent is an agent of the principal. The goods stored by him after clearance from the factory would therefore, be stored on behalf of the principal, and as such the place where such goods are stored by the C F agent would fall within the purview of sub-clause (iii) of clause (c) of Section 4(3) of the Act and as such would be the place of removal. Viewed from that light the services rendered by the C F agent of clearing the goods from the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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