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Cadbury India Ltd. Versus Commissioner of Central Excise, Mumbai - III

Cenvat Credit in respect of outward GTA used for removal of intermediate goods either to job worker or to their own other units - place of removal - Held that:- In the instant case though the goods were cleared on payment of duty from the factory of the appellant but not sold from the factory. In case of job work goods the sale of the finished goods took place from the appellant factory and in case of removal of goods to their own other unit the sale took place from that other unit. Therefore in .....

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uperintendent (A.R.) ORDER Per Ramesh Nair This appeal is directed against Order-in-Appeal No. PKS/367/BEL/2010 dtd. 7/10/2010 passed by the Commissioner of Central Excise (Appeals), Mumbai-III, wherein Ld. Commissioner (Appeals) upheld the order-in-original rejecting the appeal of the appellant. 2. The fact of the case is that the appellant availed Cenvat Credit in respect of outward GTA used for removal of intermediate goods either to job worker or to their own other units. Show cause notice w .....

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before the Commissioner (Appeals), who upheld the order-in-original and rejected the appeal of the appellant, therefore appellant is before me. 3. Shri M.P. Baxi, Ld. Counsel for the appellant submits that the appellant has availed Cenvat Credit in respect of service tax paid for the transportation of intermediate goods either to job worker or to the other unit. This intermediate goods, from the job worker, after processing returned back to the appellant's factory, thereafter final product i .....

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anufacture of the final product and there after final product is cleared for sale. Therefore sale takes place only after return of the job work goods and further use in the manufacture. Similarly in case of removal of goods to their own factory, there is no sale for very simple reason that within the same company, it is only stock transfer and not sale. Actual sale takes place only from the their other factory form where the goods are sold, therefore in both cases whatsoever transportation servi .....

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s per the definition of place of removal in term of Section 4(3)(c) of Central Excise Act, 1944, the place of removal includes a place form where the excisable goods are to be sold after their clearance from the factory. In the present case, in both the case, while clearing the goods it is not sold therefore factory of the appellant is not place of removal, the goods are finally sold after returned back from the job worker or from their other unit. Therefore both the lower authorities have misin .....

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om the place of removal. Therefore it cannot be said that factory of the appellant is not place of removal in the present case GTA use for removal of goods from the factory either to the job worker or to their own unit is beyond the place of removal therefore Cenvat credit of service tax paid in respect of said GTA is not admissible. 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 g .....

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