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TMI Blog2018 (4) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... E bags and PP bags falling under CSH 39232990 of CETA, 1985 and hold Central Excise registration. During the audit of the records of the unit, it was noticed by the department that the appellants had wrongly availed input service credit on the service tax paid on outward freight i.e. from the place of removal to the buyer premises. The department alleged that since duty was discharged at factory gate point, the fact gate becomes the 'place of removal' and the outward freight which is used for clearance of final products beyond the factory gate did not fall within the purview of definition of input service as per Rule 2(I) of CENVAT Credit Rules, 2004 (CCR) and hence input service credit availed by the appellant becomes irregular. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory gate to the depot or to the customers' premises as the case may be and is paying the service tax under Notification No.35/2004-ST dt. 03/12/2004 read with Rule 2(I)(d)(B)(v) of the Service Tax Rules, 1944. He further submitted that as per the definition of input service in Rule 2(l) of CENVAT Credit Rules, 2004 (CCR), outward transportation up to the place of removal falls under the definition of input service, He further submitted that the Commissioner(Appeals) failed to appreciate that as per the circular of the Board, the destination point i.e. the place of the buyer will be the place of removal if the following three conditions are satisified: i. The ownership and property in the goods is transferred to the buyer only when th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as per the condition in the purchase order, the ownership and property in the goods is transferred to the buyer only when the goods reached at the buyer's door step and all the risks pertaining to loss or damage has to be borne by the seller and the freight charges form integral part of the price, In view of these conditions, I am of the view that the impugned order is not sustainable in law. Further I find that in the case of Ambuja Cements Ltd. Vs. UOI [2009(14) STR 3], the Hon'ble High Court of Punjab & Haryana has held that when the goods are sent on FOR basis up to the buyer's premises and all the conditions in Circular No,97/8/2007 dt 23/08/2007 are satisfied, then the assessee is entitled to take CENVAT credit of servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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