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M/s Triveni Engineering And Industries Ltd. Versus Commissioner of Central Excise And Service Tax, Meerut

2015 (9) TMI 1214 - CESTAT NEW DELHI

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. Ltd. reported in [2015 (7) TMI 633 - CESTAT NEW DELHI] wherein this Tribun .....

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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. 52015/2015-EX(SM) - Dated:- 25-6-2015 - Ashok Jindal, Member (J),J. For the .....

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eriod 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 Cenvat Credit on insurance premium was denied. Consequently, demand of duty wa .....

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lar 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. Therefore, he is entitled to take Cenvat Credit on insurance premium during tran .....

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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 decision of Apex Court in the case of M/s. Roofit Industries Ltd. reported in [20 .....

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urance 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, the cost of transportation should be added in the assessable value, then it .....

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ook 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, issue of entitlement of input service credit on goods transportation service .....

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