TMI Blog2018 (7) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ular relates to the unamended regime. Therefore, it cannot be applied after amendment in the definition of input service which brought about a total change - appeal allowed - decided in favor of Revenue. - Appeal No. E/60193/2018-EX - Final Order No. 62482/2018 - Dated:- 29-6-2018 - Hon ble Mr.Devender Singh, Member ( Technical ) For the Appellant : Shri Tarun Kumar, AR For the Respondent : None ORDER Per : Devender Singh Despite notice, there is none for the respondent nor is there any adjournment request on record. On the last date of hearing on 22.05.2018, the respondent did not cause appearance. As the respondents appear to be not interested in defending their case, the matter is taken for disposal with the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide judgment dated January 17, 2018. However, vide amendment carried out in the aforesaid Rules in the year 2008, which became effective from March 1, 2008, the word from is replaced by the word upto . Thus, it is only upto the place of removal that service is treated as input service. This amendment has changed the entire scenario. The benefit which was admissible even beyond the place of removal now gets terminated at the place of removal and doors to the Cenvat credit of input tax paid gets closed at that place. This credit cannot travel therefrom. It becomes clear from the bare reading of this amended Rule, which applies to the period in question that the Goods Transport Agency service used for the purpose of outward transportation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion among the various provisions. Credit availability is in regard to 15. inputs . The credit covers duty paid on input materials as well as tax paid on services, used in or in relation to the manufacture of the final product . The final products, manufactured by the assessee in their factory premises and once the final products are fully manufactured and cleared from the factory premises, the question of utilization of service does not arise as such services cannot be considered as used in relation to the manufacture of the final product. Therefore, extending the credit beyond the point of removal of the final product on payment of duty would be contrary to the scheme of Cenvat Credit Rules. The main clause in the definition states ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of the respondent is concerned, i.e. (i) regarding ownership of the goods till the delivery of the goods at the purchaser s door step; (ii) seller bearing the risk of or loss or damage to the goods during transit to the destination and; (iii) freight charges to be integral part of the price of the goods. This approach of the Commissioner (Appeals) has been approved by the CESTAT as well as by the High Court. This was the main argument advanced by the learned counsel for the respondent supporting the judgment of the High Court. 9. We are afraid that the aforesaid approach of the Courts below is clearly untenable for the following reasons : 10. In the . first instance, it needs to be kept in mind that Board s Circular date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous provisions . Similarly, in the case of M/s. Ultratech Cements Ltd v. CCE Bhavnagar - 2007-TOIL-429-CESTAT-AHM = 2007 (6) S.T.R. 364 (Tribunal), it was held that after the final products are cleared from the place of removal, there will be no scope of subsequent use of service to be treated as input. The above observations and views explain the scope of the relevant provisions clearly, correctly and in accordance with the legal provisions. In conclusion, a manufacturer/consignor can take credit on the Service Tax paid on outward transport of goods up to the place of removal and not beyond that. In this connection, the phrase place of 8.2 removal needs determination taking into account the facts of an individual case and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, there may be situations where the manufacturer /consignor may claim that the sale has taken place at the destination point because in terms of the sale contract/agreement (i) the ownership of goods and the property in the goods remained with the seller of the goods till the delivery of the goods in acceptable condition to the purchaser at his door step; (ii) 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 pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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