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TMI Blog2016 (11) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit of duty paid on inputs, capital goods and input services in terms of Cenvat Credit Rules, 2004. The issue in the present appeal is relating to denial of Cenvat credit availed of service tax paid on GTA services for transporting the final products from the factory of the appellant to the premises of (a) the appellant s depot (b) appellant s consignment agent and (c) appellant s customers. The period involved is April 2009 to March 2011 and the total credit denied is Rs. 99,21,728/-. The impugned order confirmed the demand only on the ground that the factory is considered as a place of removal and any outward transportation beyond the factory is not entitled for credit as per the definition of input service under Cenvat Credit R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he credit under outward transportation from/up to the place of removal. The said decision was reversed by the Hon'ble High Court of Karnataka in 2011 (23) S.T.R. 97 (Kar.). However, the eligibility of credit was justified on other grounds. 4. The learned AR reiterated the findings in the impugned order. He submitted that there could be no bonafide belief in respect of place of removal and the eligibility of credit to the appellants. He supported the demand for extended period. 5. We have heard both the sides and perused the appeal records. We note that impugned order held that the goods were sold at the factory gate and as such the credit on GTA services for outward transportation of finished goods is not available to the appellant. We no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e other than factory gate. In such situation the freight up to the place of such removal/sale is eligible. The same has been clarified in Board Circular dated 20/10/2014. We further note that the amendment carried out w.e.f. 01/4/2008 has no impact to decide the present appeal. In the said amendment in the definition of input service, the words from the place of removal were replaced by up to the place of removal . The place of removal as defined under Section 4 of the Act includes a depot, premises of consignment agent, or any other place or premises from where excisable goods are to be sold after their clearance from the factory from where such goods are removed. In the present case, the appellants claim regarding eligibility of service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents. Though the appellant admitted on merit their ineligibility because of the reasons stated above, they have contested on the question of time bar which we find is not acceptable. Even considering that there could be some question of interpretation regarding place of removal for Cenvat credit purposes, the appellants act of taking credit on the freight charges which are paid by the buyers and on which no excise duty has been paid by the appellant cannot be considered as a bonafide act. On this ground, we find no reason to interfere with the impugned order. 7. Accordingly, in view of the discussion above, Cenvat credit of Rs. 6,03,113/- in respect of clearances to SEZ (paid and appropriated) and Cenvat credit of Rs. 24,34,593/- in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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