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2016 (7) TMI 1023 - CESTAT NEW DELHI

2016 (7) TMI 1023 - CESTAT NEW DELHI - 2016 (45) S.T.R. 198 (Tri. - Del.) - Cenvat credit of service tax paid on GTA services for outward transport of finished goods from the factory to the buyer’s premises. - Held that:- the respondent have undertaken the transportation and the value of such transportation is apparently included for the purpose of discharging central excise duty on the finished goods. The freight was integral part of the value in the present case has been admitted by the Origin .....

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BER (TECHNICAL) Rep. by Shri Dharam Singh, AR for the appellant. Rep. by Shri Rajesh Gupta, CA for the respondent. ORDER Per B. Ravichandran: The appeal is by Revenue against order dated 28.01.2016 of Commissioner (Appeals-I), Meerut. The respondents are engaged in the manufacture of Resin, Catalyst, thinner, varnish, etc. liable to central excise duty. The dispute relates to eligibility of the respondent for cenvat credit of service tax paid on GTA services for outward transport of finished goo .....

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There is clear evidence that the property of the goods passed on from the respondent to the buyer at buyer s end only. He relied on the various decided cases on the subject. 2. The Revenue preferred this appeal mainly on the ground that the respondents are not eligible for such credit on the basis of Hon ble Supreme Court s decision in the case of Ispat Industries Ltd. - 2015 (10) LCX 0008. It is the case of the Revenue that based on the definition of place of removal appearing under Section 4 o .....

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credit to the respondent. He submitted that the amended definition of input services under Rule 2 (l) of Cenvat Credit Rules, 2004 clearly stipulates that outward transportation upto the place of removal is eligible for credit. In the respondent s case, it an admitted fact that the goods were cleared on FOR basis and the money consideration is paid only on the delivery of goods to the buyers and upto such delivery, the risk of the goods is with the respondent. He further submitted the various do .....

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he Larger Bench of the Tribunal in the case of ABB Ltd. & Ors. Vs. CCE, Bangalore 2009 (15) STR 23 (Tribunal-LB). In para 32 of the decision, the Hon ble High Court has also made reference to the above decision of the Hon ble High Court of Punjab & Haryana in the case of M/s. Ambuja Cement Vs. Union of India reported in 2009 (236) ELT 431 (P&H) . A careful study of these judgements read with CBEC Circular No.97/6/2007-S.T. dated 23.08.2007 and Circular no.988/12/2014-CX dated 20.10.2 .....

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latter relied on a judgement in the case of All India Federation of Tax Practitioners Vs. Union of India [2007 (7) STR 625 (S.C.)] wherein Hon ble Supreme Court observed that service tax and excise duty are consumption taxes to be borne by the consumer and therefore if credit is denied on transportation service the levy of service tax on transportation will become a tax on business rather than being a consumption tax. Hon ble High Court also agreed with the Tribunal s view in order dated 18.05. .....

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ds up to the customer s premises on F.O.R. basis is available to the appellant. Once there is no demand, question of interest and penalty does not arise. 6. The main thrust in the Revenue s appeal is the finding of the Hon ble Supreme Court in Ispat Industries Ltd. (supra) regarding place of removal . The Hon ble Supreme Court was examining the question of valuation of excisable goods with reference to inclusion or otherwise, the freight charges from the factory gate to the buyer s premises. In .....

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