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2015 (11) TMI 506 - CESTAT MUMBAI

2015 (11) TMI 506 - CESTAT MUMBAI - TMI - Denial of CENVAT Credit - GTA Service - clearances to the job worker and their own unit made on payment of duty - Credit beyond place of removal - Held that:- Goods were cleared on payment of duty but it is admittedly not clearance for sale of the goods - where the goods is cleared from factory, but place of removal is determined only a place, where the goods is sold. In case goods is sold from factory, the factory gate is considered as place of removal .....

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ir own other unit the sale took place from that other unit. Therefore in the present case transportation (GTA) service is used up to the place of removal and hence qualified as input service. - GTA in the present case being used up to the place of removal covered under the definition of input service and hence admissible for Cenvat Credit. I therefore set aside the impugned order - Decided in favour of assessee. - Appeal No. E/161/11 - Dated:- 25-6-2015 - Mr. Ramesh Nair, Member (Judicial) For t .....

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ntermediate goods either to job worker or to their own other units. Show cause notice was issued for denial of credit amount of ₹ 4,21,099/- for the period June 2005, December, 2008 and also proposed demand of interest under Section 11AB, penalty under Section 11AC. Show cause notice was adjudicated by the adjudicating authority wherein demand was confirmed vide order in original dated 29/1/2010, apart from demand, levy of interest under Section 11AB and penalty of ₹ 4,30,977/- was i .....

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ter processing returned back to the appellants factory, thereafter final product is cleared on payment of duty. In case of intermediate goods cleared to their other factory the same is used for manufacture of other final product and the final product is cleared on payment of duty. It is his submission that the clearances to job worker and their own factory is before the place of removal for the reason that when the goods are cleared to the job worker though the excise duty is paid but goods is .....

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heir other factory from where the goods are sold, therefore in both cases whatsoever transportation services are used, it is before the stage of sale of the goods and therefore services are clearly covered under the input service which is used in or in relation to the manufacture of final product and also before the place of removal. He submits that both the lower authorities denied the Cenvat Credit only on the ground that since the intermediate goods for which transportation services were used .....

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eturned back from the job worker or from their other unit. Therefore both the lower authorities have misinterpreted the place of removal and hence the denial of credit is also not correct. 4. On the other hand, Shri. Sanjay Hasija, Ld. Superintendent (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He further submits that the goods cleared from the appellant factory is on payment of duty either in the case of clearance to the job worker or their own other .....

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le. 5. I have carefully considered the submissions made by both sides. 6. I find that both lower authorities have confirmed demand of Cenvat credit on GTA only on the ground that clearances to the job worker and their own unit made on payment of duty, for this reason it was contended that factory of the appellant is place of removal and credit cannot be allowed beyond the place of removal. I find that though the goods were cleared on payment of duty but it is admittedly not clearance for sale of .....

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