TMI Blog2019 (8) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... n transportation of goods by road. There is also no doubt that the disputed CENVAT credit is related to manufacture of the finished goods. On a plain reading of the provisions of rule 2(l) of CENVAT Credit Rules, 2004 and the facts and circumstances of the present dispute, along with superfluity, of one to one correlation between input services and output, it would appear that the availment is not incorrect in law - The denial of CENVAT credit on availment of services of courier is not in accordance with law and must be set aside. However, in relation to the activity on which tax was discharged by the supplier of business auxiliary service, we find that the coverage of business auxiliary service cannot be held to extend to such activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. It is the contention of Learned Counsel for appellant that as manufacturers of denim fabric of various specifications, courier service is utilised for despatch of samples to potential customers and that it is the resulting orders that are manufactured. Laying particular emphasis on customised production, Learned Counsel submits that such service is inextricably connected with business and well within the inclusive component of the definition referred supra during the relevant period. It is his further submission that the appellate authority had dropped the notices pertaining to subsequent periods and that sustaining of denial for the period in dispute would be patently inconsistent. On the eligibility of taxes dischar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the place of removal is the factory and not the premises of the consignee; consequently in this dispute which straddles the preamended and post amended versions of rule 2(l) of CENVAT Credit Rules, 2004 the expenditure incurred after removal of the goods excludes the claim for availment of CENVAT credit. He also contends the various case laws relied upon by the appellant predate the decision of the Hon'ble Supreme Court in Commissioner Of Central Excise Service Tax v. Ultra Tech Cement Ltd [2018 (9) GSTL 337 (SC)]. He also contends that the decision of the Tribunal in Universal Cables Ltd v. Commissioner of Central Excise, Bhopal [2007 (7) STR 310 (Tri-Del) has made it abundantly clear that any activity akin to outward transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sportation is an entirely different taxable entry, and the transportation that is referred to in the said definition pertain to tax on transportation of goods by road. There is also no doubt that the disputed CENVAT credit is related to manufacture of the finished goods. Hence, on a plain reading of the provisions of rule 2(l) of CENVAT Credit Rules, 2004 and the facts and circumstances of the present dispute, along with superfluity, of one to one correlation between input services and output, it would appear that the availment is not incorrect in law. The dispute re Ultra Tech Cement Ltd pertained to availment of goods transport agency service for the period after 23rd August 2007 which is germane to the exclusion of finished good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied that Courier Services involves a host of uses relating to the activity of manufacture and sale of goods. For example, the documents relating to technical expert s opinion, sample testing report, sending of samples, machine catalogue etc., are received and dispatched by utilising the services of Courier and it cannot be said that these are de hors of the activities of manufacturing business. This Tribunal in the cases of Long Meditech Ltd and Sunbeam generators Pvt Ltd (supra) opined that credit avail on Service Tax paid on Courier Serves is eligible to Cenvat Credit. 6. In view of our findings above, the denial of CENVAT credit on availment of services of courier is not in accordance with law and must be set asid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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