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Lucas TVS Ltd. Versus Commissioner of Central Excise, Chennai

2017 (11) TMI 607 - CESTAT CHENNAI

CENVAT credit - input services - outward transportation of finished products for clearances within India as well as for export - place of removal - Revenue's case is that Since the place of removal is factory gate, the appellant is not eligible for credit for clearances of goods beyond the place of removal/factory gate - whether the appellant is eligible for credit on service tax paid on outward transportation services availed for domestic clearances of finished products upto the buyer's premise .....

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n the impugned order, the matter requires to be remanded to the Commissioner (Appeals) who shall look into the evidence / documents furnished by the appellant and consider the eligibility of credit - appeal allowed by way of remand. - Appeal No. E/41800/2017 - Final Order No. 42828 / 2017 - Dated:- 8-11-2017 - Ms. Sulekha Beevi C.S. Member ( Judicial ) Shri Raghavan Ramabadran, Advocate For the Appellant Shri A Cletus,AC (AR) For the Respondent ORDER The appellants are manufacturers of Motor Veh .....

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re not eligible for credit beyond the factory gate upto the buyer s premises on the service tax paid on outward transportation. Show Cause Notices were issued for the period 8/2007 to 5/2008 and after due process of law, the original authority disallowed the credit, confirmed the demand and imposed penalties. The appellant filed appeal before the Commissioner (Appeals) who vide order dated 1.2.2011 had allowed the credit. Against this department filed appeal before the Tribunal and vide order da .....

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d. The appellants are now before the Tribunal aggrieved by the disallowance of credit of service tax paid on outward transportation for domestic clearances uptothe buyer s premises. 2. The Ld.Counsel, Shri Raghavan Ramabadran appeared on behalf of the appellant and submitted that the purchase order and such other documents would show that the domestic sale is on FOR basis. The Tribunal while remanding the matter had given specific direction to the Commissioner (Appeals) to examine the evidence a .....

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owed the credit on domestic clearances. He submitted that the Commissioner (Appeals)has wrongly placed reliance on the case of CCE, Nagpur Vs Ispat Industries Ltd 2015 (324) ELT 670 S.C. The Ld.Counsel submitted that in their own case vide decision reported in 2016 (43) STR 418 (Tri-Chennai) the Tribunal had held the issue in favour of appellant. The Ld.Counsel relied on the following judgements in which the issue is held in favour of assesse. The Commissioner of Central Excise, Coimbatore Vs M/ .....

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sEllora Time Ltd. 2014 (34) S.T.R.801 (Guj.) RamalaSahkariChini Mills Ltd. Vs. Commissioner of Central Excise, Meerut-I 2016 (334) E.L.T. 3 (S.C.) Commissioner of C.Ex., Dehradun VsForace Polymers Pvt. Ltd. 2016 (45) S.T.R. 198 (Tri.- Del.) 3. Against this the Ld.AR, Shri A.Cletus reiterated the findings in the impugned order. He relied upon the decision in the case of Vesuvious Ltd. 4. Heard both sides. 5. The issue for consideration is whether the appellant is eligible for credit on service ta .....

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ied that credit is admissible for outward transportation upto buyer s premises if the sale is on FOR basis. In para 8.2 the Board clarifies as under : It is therefore, clear that for a manufacturer/consignor, the eligibility to avail credit of the service tax paid on the transportation during removal of excisable goods would depend upon the place of removal as per the definition. In case of a factory gate sale, sale from a non-duty paid warehouse, or from a duty paid depot (from where the excisa .....

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the seller bore the risk of loss of or damage to the goods during transit to the destination and (iii) the freight charges were an integral part of the price of goods. In such cases, the credit of the service tax paid on the transportation up to such place of sale would be admissible if it can be established by the claimant of such credit that the sale and the transfer of property in goods (in terms of the definition as under Section 2 of the Central Excise Act, 1944 as also in terms of the pro .....

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