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2015 (11) TMI 706 - CESTAT NEW DELHI

2015 (11) TMI 706 - CESTAT NEW DELHI - TMI - Denial of CENVAT Credit - whether, outward freight charges paid by the appellant for transportation of goods to its buyers premises should be considered as input service , defined under Rule 2(l) of the Cenvat Credit Rules, 2004 and whether service tax paid on the freight charges is admissible to the appellant as cenvat credit - Held that:- Invoices issued by the appellant clearly depict that the freight has been separately charged in the said invoice .....

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isk or loss or damage to the goods during transit to the destination and also the freight charges mentioned in the invoices issued by the appellant were an integral part of the price of goods. Since, the conditions enumerated in the Circular dated 23.08.2007 have been duly complied with by the appellant, I am of the considered view that the freight charges incurred for transportation of goods up to the buyers premises should be considered as input service after amendment of the provisions of Rul .....

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d:- 28-5-2015 - Mr. S.K. Mohanty, Member (Judicial) For the Petitioner : Ms. Asmita Nayak (Advocate) For the Respondent : Mr. R K Mishra, DR ORDER Per S K Mohanty: These seven numbers of appeal have been filed against the impugned order dated 26.09.2012 and 27.09.2012 passed by Commissioner (Appeals-II) Customs and Central Excise- Jaipur-II, wherein cenvat credit of service tax on freight charges paid for safe transportation of goods by the appellant to its buyers premises has been denied on the .....

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vices and GTA Services (All related to outward transportation of goods to the buyers premises). The credit so taken were denied and penalty imposed in the adjudication orders. In appeal, the Commissioner (Appeals) has upheld confirmation of the adjudged demand. The Commissioner (Appeals) vide the impugned orders has held that the appellant had not complied with the requirement of Circular No. 97/08/2007-ST dated 23.08.2007 issued by the CBEC, to substantiate the fact that place of removal of th .....

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e transit to the destination; and that freight charges mentioned in the invoices were an integral part of the price of goods. 3. During the course of hearing, the Ld. Advocate submitted the certificate issued by the buyers of goods and also the certificate of the practicing Chartered Accountant to demonstrate that the ownership of goods always remained with the appellant till the same were ultimately delivered at the customers end/ site. To substantiate her stand that the service tax paid on th .....

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mmissioner vs Alloys Time Ltd. reported in 2013 (34) STR 801 (Guj.). She also referred to and relied on the CBEC Circular being No. 97/8/2007-ST dated 23.08.2007 to support her stand+ that the clarification/ guidelines issued therein are squarely applicable to the facts of the present case for the purpose of consideration of the place of removal as the factory gate of the buyer, for availing the cenvat benefit by the appellant. 4. Per contra, Sh. R K Mishra the Ld. DR appearing for the respond .....

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y this Tribunal, is as to whether, outward freight charges paid by the appellant for transportation of goods to its buyers premises should be considered as input service, defined under Rule 2(l) of the Cenvat Credit Rules, 2004 and whether service tax paid on the freight charges is admissible to the appellant as cenvat credit. 7. The input service definition contained in the cenvat statute takes within its ambit the phrase clearance of final product from the place of removal . The definition w .....

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d Rule 2(l). However, the question involved in these appeals for consideration, is as to whether, service tax on freight element is eligible to the appellant as cenvat credit after the period 01.04.2008 in terms of amended definition of input service. In this context, I find that the CBEC has issued the Circular dated 23.08.2007 in framing the guidelines by relying on the judgment of Punjab & Haryana High Court in the case of Ambuja Cements Ltd. vs UOI reported in 2009 (14) ST (P&H). In .....

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ral part of the price of goods. 8. I find from the purchase orders placed in the file that the buyer of the goods have specifically indicated therein that risk and reward will be of supplier till the delivery of goods at our site . Further the invoices issued by the appellant clearly depict that the freight has been separately charged in the said invoices which is forming the part of overall sale price and also the certificates issued by the buyer of the goods by the practicing Chartered Account .....

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