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2015 (9) TMI 1214 - CESTAT NEW DELHI

2015 (9) TMI 1214 - CESTAT NEW DELHI - 2016 (41) S.T.R. 90 (Tri. - Del.) - Denial of CENVAT Credit - input services - Credit of Service Tax paid on transit insurance payment in respect of insurance of goods during transit from the factory to customers premises - Place of removal - Held that:- Sales are on FOR destination basis. Infact decision of this case support the case of the appellant. Further, I find that a similar issue came up before the Tribunal in the case of Suzuki Motorcycle (I) Pvt. .....

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on of the goods upto the place of buyer and same has been reimbursed by the buyer of the goods. Therefore, the facts of the case in hand are similar to the facts of Suzuki Motorcycle (PI) Pvt. Ltd. (supra). In these circumstances, I hold that appellant is entitled to take cenvat credit of insurance premium charges paid by them when there is no dispute that the goods were delivered at the customers place. - Decided in favour of assessee. - Excise Appeal No. 55437 of 2013-EX(SM) - Final Order No. .....

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nputs and capital goods of Service Tax paid on input services. During the period 2006-2007 to 2010-2011, the appellant availed Cenvat Credit of service tax paid on transit insurance in respect of insurance of goods during transit from the factory to the customers premises. The Revenue is of the view that as place of removal is factory gate, therefore, appellant is not entitled to take Cenvat credit of insurance premium. Therefore, impugned proceedings were initiated against the appellant and Cen .....

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with the appellant and they have complied with the condition of CBEC Circular No. 97/09/07 dated 23.8.07. As during transit of goods from the factory to the customers premises, the risk of loss of goods or damage to the goods was of the appellant and for the freight up to the customers premises was integral part of the price of goods as the sales were FOR destination basis. He further submits that in case of sales on FOR destination basis, the places of removal is customers' premises. There .....

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on the decision of Tribunal in the case of Suzuki Motorcycle (I) Pvt. Ltd. vs. CCE, Delhi III [2015 (38) STR 209) (Tri-Del)] . 4. On the other hand, learned AR opposed the contention of learned Counsel and submits that as the transit insurance premium is not a part of assessable value, therefore, appellant is not entitled to take Cenvat credit as held by Hon'ble Chhattisgarh High Court in the case of Lafarge India Ltd. reported in [2014 (307) ELT 7 (Chhattisgarh)] . He also relied on decisi .....

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of duty of sugar is specific. The stand of the Revenue is that when the insurance charges has been reimbursed to the appellant, they are not entitled to take cenvat credit thereon and to support this contention, shelter of decision of Lafarge India Ltd. (supra) and Kohinoor Biscuit Products (supra) was taken. In fact in the case of M/s. Roofit Industries Ltd. (supra), the issue of valuation was there wherein the Hon'ble Apex Court held that in case of goods delivered at the customers place, .....

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Hon'ble High Court was that if under the terms of contract, the sales took place at destination, then place of removal and service tax paid on GTA service for transportation of goods upto the destination might be available for credit but in that case, also the Hon'ble High Court has not decided the issue whether the appellant was entitled to take cenvat credit on transportation charges if same are reimbursed by the buyers. And in that case the issue was of goods transportation service, i .....

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