TMI Blog2019 (2) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... e of customer, as the case may be - credit allowed - appeal allowed - decided in favor of appellant. - Ex. Appeal No.78529/18 - FO/75197/2019 - Dated:- 18-2-2019 - SHRI P.K. CHOUDHARY, JUDICIAL MEMBER Shri Shyamal Dey, Advocate for the Appellant (s) Shri A. Roy, Supdt. (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.33/SLG-CGST/2018 dated 21.06.2018. 2. The facts of the case in brief are that the appellant availed cenvat credit of service tax paid on outward freight, whereas their place of removal is the factory gate. The period of dispute is from 01.01.2005 to 2007-2008, 2008-2009 and 2009-2010 (Upto November, 2009). Show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput service means, the Full Bench of the CESTAT held that all input services which are used by the manufacturer, whether directly or indirectly, in or in relation to manufacture of final products and clearance of final products from the place of removal are concerned, they are treated as input services and Cenvat credit in respect of expenditure incurred in relation to such services would be admissible. The expression with which the CESTAT was concerned, and which was the subject matter of discussion, was as to what would be the meaning of from the place of removal . Obviously, any input service given for clearance of the final products from the place of removal and tax paid thereon the Cenvat credit has to be given. The question is fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products. It also includes clearance of final products from the place of removal. Therefore, services received or rendered by the manufacturer from the place of removal till it reaches its destination falls within the definition of input service. What are the services that normally a manufacturer would render to a customer from the place of removal? They may be packing, loading, unloading, transportation, delivery, etc. Though the word transportation is not specifically used in the said section in the context in which the phrase clearance of final products from the place of removal is used, it includes the transportation cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uts or capital goods . But, while dealing with outward transportation those two words are conspicuously missing. The reason being, after inward transportation of inputs or capital goods into the factory premises, if a final product emerges, that final product has to be transported from the factory premises till the godown before it is removed for being delivered to the customer. Therefore, input service includes not only the inward transportation of inputs or capital goods but also includes outward transportation of the final product upto the place of removal. Therefore, in the later portion of the definition, an outer limit is prescribed for outward transportation, i.e., up to the place of removal. 7. As mentioned above, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
