TMI Blog2018 (12) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... Prasad, Chartered Accountant for the Appellant. Shri A.V.L.N. Chary, Superintendent /AR for the Respondent. ORDER Per: Mr. M.V. Ravindran 1. This appeal is directed against Order-in-Appeal No. HYD-EXCUS-SC- AP2-0173-17-18-ST, dated 09.01.2018. 2. Heard both sides and perused the records. 3. The relevant facts that arise for consideration, after filtering out unnecessary details are appellants are manufacturers of Wire Wound Resistors and Potentiometers; were availing the CENVAT credit of the duty paid on inputs, capital goods and input services as per the provisions of CENVAT Credit Rules, 2004; during an audit it was noticed that appellants had availed irregular CENVAT credit of the service tax paid on parcel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the respondent availed credit on courier/freight services used for delivery/transportation of the goods from port of export to foreign buyers premises. Thereafter, the show cause notice issued to deny the credit to the respondent. The adjudication took place and the demand was confirmed along with interest and penalty was also imposed. On appeal, the Commissioner (Appeals) has held that the goods have been sold by the appellant on Delivered Duty Paid (DDP) basis which means that the seller bear all the cost and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all Customs formaliti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. She further submits that in the case of Ambuja Cements (Supra), the Hon ble High Court has relied on the CBEC circular No.999/6/2015-Cx dt.28.2.2015 wherein it has been stated that if the cost of service has been included by the assessee, the ownership of the goods remained with the seller and the insurance charges have been paid by the seller. In this case, the place of removal can be extended to the place of buyer. Admittedly the ownership of the goods remained with the seller and the respondent has paid service tax on the courier/transportation charges, in that circumstance, the respondent is entitled to avail the credit. She also relied on the decision of the Hon'ble Karnataka High Court in the case of Madras Cements Limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all Customs formalities. The ownership right of the goods remains with the respondent. Therefore, CBEC circular is not relevant to the facts and decision in the case of Khanna Industrial Pipes Pvt. Ltd. is not relevant to the facts of the present case. 8. Further, in the case of Ambuja Cements (Supra), the Hon'ble Punjab Haryana High Court has examined the issue and held that the circular No.97/6/2007-ST dated 23.8.2007 lays down three conditions, namely, (a) the ownership of goods and the property of the goods remained with the seller of the goods till the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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