TMI Blog2015 (6) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of Cenvat Credit Rules, 2004 and accordingly it is the factory gate which would be the place of removal. Moreover, even if the definition of “place of removal” as given in Section 4(3)(c) is treated as applicable to the cases where the duty on the finished goods is payable on the value determined under Section 4A, even then, the depot of M/s. Parle Biscuits cannot be treated as “place of removal” in respect of the goods manufactured by the appellant as the, “place of removal” defined in Section 4(3)(c) is the place of removal for the manufacturer of the goods and in case, the manufacturer after clearing the goods from the factory to his depots [clears] all the goods from those depots, it is those depots which would be the place of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Act, 1944 and accordingly the duty on the biscuits cleared by the appellant was being paid on the basis of the assessable value determined with reference to declared MRP i.e. MRP minus abatement. The point of dispute in this case is as to whether the appellant would be eligible for Cenvat credit of Service Tax paid on the GTA service availed for transportation of the biscuits from their factory to the depot of M/s. Parle Biscuits. The original Adjudicating Authority denied the credit and confirmed the Cenvat credit demand of ₹ 65,420/- along with 6interest and imposed penalty of same amount on them under Rule 15 of Cenvat Credit Rules, 2004. On appeal being filed against order of the original Adjudicating Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, and that in view of this, the appellant would be eligible for Cenvat credit of Service Tax paid on the GTA service availed for transportation of the biscuits up to the depots of M/s. Parle Biscuits. He also cited the judgment of the Tribunal in the case of M.P. Biscuits Pvt. Ltd. v. CCE, Allahabad involving same facts and same issue, wherein the Tribunal vide order reported in 2012 (282) E.L.T. 563 (Tri. - Del.) = 2014 (34) S.T.R. 318 (Tri.) has held that the assessee would be eligible for Cenvat credit of service tax paid on the GTA service availed for transportation of the biscuits from his factory to the depot of M/s. Parle Biscuits. He, therefore, pleaded that the impugned order is not correct. 5. Shri Yashpal Sharma, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the records. 8. The undisputed facts are that the appellant manufactured biscuits on job work basis out of the raw material supplied by M/s. Parle Biscuits and arrange the transportation of the biscuits to the depots of M/s. Parle Biscuits in terms of the appellant s contract with them. There is also no dispute that biscuits are notified under Section 4A and accordingly the duty on the biscuits was being paid on the assessable value determined under Section 4A with reference to MRP i.e. the MRP minus abatement. The point of dispute is as to whether the appellant would be eligible for Cenvat credit of service tax paid on the GTA service availed for transportation of the biscuits from their factory to the depot of M/s. Parle Biscuits. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods from those depots, it is those depots which would be the place of removal. However, when the manufacturer clears the goods to the depots of some other persons, those depots cannot be treated as place of removal for the manufacturer, unless the sales are on FOR destination basis. For this reason also, the place of removal in this case is factory gate of the appellant, and not the depot of M/s. Parle Biscuits. In view of this, we hold that the Cenvat credit of the service tax paid on the GTA services availed for transportation of goods from the factory of the appellant to the depot of M/s. Parle Biscuits has been correctly denied and, as such, the Cenvat credit demand has been correctly upheld along with interest. 9. In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
