TMI Blog2018 (12) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... t or the place of customer, as the case may be - credit allowed - appeal allowed - decided in favor of appellant. - Appeal No. E/75456/15 - FO/76502/2018 - Dated:- 23-4-2018 - SHRI P.K. CHOUDHARY, MEMBER (JUDICIAL) Shri B.N. Chattopadhyay, Consultant for the Appellant (s) Shri S. Mukhopadhyay, Suptd. (A. R.) for the Revenue ORDER PER SHRI P.K. CHOUDHARY The present appeal is filed by the appellant against the Order-in- Appeal No. 14/KOL-IV/2015 dated 20.03.2015 passed by the Commissioner of Central Excise, Appeal-II Commissionerate, Kolkata. 2. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of CR Strips, Precision Pipes and Tubes classifiable under Chapter 72 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e which was prevailing at the relevant period i.e. prior to April 1, 2008. This definition contained in Section 2(l) of the Rules, 2004 reads as under: Input Service means any service- (i) Used by a provider of taxable service for providing an output service; or (ii) Used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es to be integral part of the price of the goods. 6) As mentioned above, in these cases, the assessees are claiming Cenvat Credit in respect of Service Tax paid on outward transportation from their factory to the premises of customers. As per the Department, outward transportation engaged for removal of goods from factory to customer premises cannot be considered as an input service since premises of customer is not recognized as a place of removal under the Central Excise Act. To put it differently, the Department contends that the outward transportation provided beyond the place of removal is not eligible for input service for availing Cenvat Credit. 7) Having regard to the definition of input service that was prevailing at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e two clauses are read together, it becomes clear that transport service credit cannot go beyond transport upto the place of removal. The two clauses, the one dealing with general provision and other dealing with a specific item, are not to be read disjunctively so as to bring about conflict to defeat the laws scheme. The purpose of interpretation is to find harmony and reconciliation among the various provisions . Similarly, in the case of M/s Ultratech Cements Ltd. Vs CCE Bhavnagar 2007-TOIL-429-CESTAT-AHM, 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 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 excisable goods are sold, after their clearance from the factory), the determination of the place of removal does not pose much problem. 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 stepl (ii) the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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