TMI Blog2015 (5) TMI 1001X X X X Extracts X X X X X X X X Extracts X X X X ..... is of the Cenvat provisions, Central Excise statute and the interpretation placed by various judicial forums on such statutory provisions, the CBEC vide Circular dated 23.8.2007 has clarified that customers site where the ownership of the goods have been transferred, should be considered as 'place of removal' for the purpose of taking cenvat credit. Thus eligibility of Cenvat Credit on the transportation charges paid on the goods, where the ownership transferred at the buyer's end confirmed - Decided in favour of assessee. - Excise Cross Application No. E/CROSS/55374/2014 And Excise Appeal No. E/53785/2014-Ex(SM) - - - Dated:- 22-5-2015 - SK MOHANTY, MEMBER (JUDICIAL) For the Petitioner : Mr G R Singh, DR For the Respondent : M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Respondent submits that as per the agreement entered into between the respondent and the buyer, the goods had been delivered on FOR basis at the premises/site of the buyers and all the charges including the transportation and central excise duty are integrated in the assessable value, on which the central excise duty liability has been discharged by the respondent. According to the Ld. Advocate, since, the transit insurance, freight charges have been borne by the respondent and the ownership of the goods transferred to the buyers at their end, the service tax paid on the transportation charges is eligible for Cenvat Credit in terms of Rule 2(1) of the Cenvat Credit Rules, 2004 read with Circular No. 97/8/2007-ST dated 23.8.2007 issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s during transit; and that the freight charges were an integral part of the price of goods sold by the respondent to its buyers. Therefore, in this situation, the buyer's premises will qualify as 'place of removal' for the purpose of taking Cenvat Credit of service tax paid on transportation of goods. 7. I find that upon proper analysis of the Cenvat provisions, Central Excise statute and the interpretation placed by various judicial forums on such statutory provisions, the CBEC vide Circular dated 23.8.2007 has clarified that customers site where the ownership of the goods have been transferred, should be considered as 'place of removal' for the purpose of taking cenvat credit. The relevant portion of the said circul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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