TMI Blog2018 (7) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... year for the demand till the year 2014 - Since the fact of availment of such irregular credit was not disclosed to the Department, the Commissioner has rightly held it to be a clear case of suppression of relevant facts warranting invocation of extending period and imposition of mandatory penalty under Section 78 - SCN is not time barred. Appeal dismissed - decided against appellant. - Appeal No. ST/51046/2018 – EX(SM) - Final Order No. 52367/2018 - Dated:- 2-7-2018 - Hon ble Ms. Rachna Gupta, Member ( Judicial ) Shri Ravikant Mishra, Advocate for the appellant Shri H.C. Saini, D. R. for the respondent ORDER Per Rachna Gupta Present is an appeal filed being aggrieved of Order of Commissioner (Appeals) dated 26.02 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of place of removal as given in the Act and since the place where excisable goods sold can be the place where the property or goods can process from buyer to seller and the sale culminates only after the goods reached the destination then it will be deemed to be place of removal. Accordingly, the freight rate for transporting the goods from the Appellant s premises to the customer s premises for sale, have had rightly been considered as input services by the Appellant and a right credit thereof has been availed. The findings of the order under challenge are therefore liable to be set aside. 3. It is further submitted that even if the Tribunal is convinced with the findings of the impugned order, still the order under challenge deser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record of this appeal, we are of the considered opinion as follows: (i) The core issue involved in the present case is with regard to the admissibility, or otherwise, of Cenvat Credit on goods transport agency service availed for transport of goods from the place of removal to the buyer s premises, treating the said service as the input service. For this purpose, the definition of input service as defined in Rule 2(l) of Cenvat Credit Rules, 2004 (CCR) is important to be looked into. It reads as follows: 5. Input service is defined in Rule 2(l) of the Rules, 2004 which reads as under: 2(l) input service means any service:- (i) Used by a provider of taxable service for providing an output services; or (ii) Used by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 amendment Rule, which applies to the period in question that the Goods Transport Agency service used for the purpose of outward transportation of goods, i.e., from the factory to customer s premises, is not covered within the ambit of Rule 2(l)(i) of Rules, 2004. Whereas the word from is the indicator of starting point, the expression upto signifies t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Ltd. 1988 (36) E.L.T. 723 (S.C.) and Baroda Electric Meters 1997 (94) E.L.T. 13 (S.C.). The post removal transport of manufactured goods is not an input for the manufacturer. Similarly, in the case of M/s Ultratech Cements Ltd. v. CCE, Bhatnagar 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. 5. From the above discussion, it becomes clear that the Cenvat Credit on goods transport agencies availed for transport of goods from place of removal to buyer s premises was not admissible to the Appellant. Accordingly, we do not find any infirmity to this extent with the order under challenge. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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