TMI Blog2019 (10) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... MMISSIONER OF CENTRAL EXCISE SERVICE TAX, BANGALORE VERSUS M/S ABB LTD. AND OTHERS [ 2011 (3) TMI 248 - KARNATAKA HIGH COURT] . Further, the Hon ble Apex Court and the High Court of Karnataka in the aforesaid decision, also allowed the credit of service tax availed on transportation of goods up to customer s premises. Eligibility of cenvat credit of service tax on transportation of goods up to the customer s premises after the period w.e.f 01.04.2008 - HELD THAT:- In view of the various decisions of the Board Circular No. 1065/4/2018-CX dated 08.06.2018, the matter needs to be remanded to the original authority to verify certain factual aspects such as whether the sale is on FOR basis, whether the freight is integral part of the sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes etc. falling under Chapter 72 of CETA, 1985 and are availing cenvat credit on inputs, capital goods and input services which are used in or in relation to the manufacture of final product. Appellants also availed credit of service tax paid on transportation of goods from its factory/depot to the port of shipment/customer s premises. Appellants have been filing the returns regularly showing the details of credit availed on the service of goods transport by road from its factory/depot to the port of shipment/customer s premises and based on these returns, the Superintendent of Central Excise vide letter dated 05.11.2007 and 07.05.2008 demanded the details from the appellant regarding the availment of cenvat credit of service tax paid on o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. ABB Ltd. 2011 (23) STR 97 (Kar.) b. Commr. of Cus. C.Ex. S.T., Guntur Vs. Andhra Sugars Ltd. 2018 (10) G.S.T.L. 12 (S.C) 4.1. He further submitted that in view of the decision of the Apex Court, the demand of ₹ 4,35,84,704/- (Rupees Four Crore Thirty Five Lakhs Eighty Four Thousand Seven Hundred and Four only) for the period from June 2007 to March 2008 is liable to be set aside. He further referred to the definition of input service during the period up to 31.03.2008 as provided in Rule 2(l) of Cenvat Credit Rules, 2004. He also submitted that in the case of goods cleared for exports, the port is the place of removal even for the period after 31.03.2008. He also submitted that during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch other place. He also submitted under the Central Excise Act, 1944 sale means transfer of possession of goods from one person to another for a consideration and if the same provision is applied to the place of removal , then it emerges that in case the possession of goods is transferred by the manufacturer to its buyers at the buyer s doorsteps for a consideration, then the goods should be treated to have been sold at the buyer s doorstep and in such a situation the place of removal would be buyer s premises and not the factory/depot of the manufacturer. He also submitted that during the relevant period, the appellants have cleared the final goods to their customers and the sales were on FOB basis. He further submitted that the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b. Mahle Engine Components India Pvt. Ltd. Vs. CCE ST, Chennai Final Order Nos. 40440-40450/2019 dated 25.02.2019 c. M/s. Honda Seil Power Products Ltd. Vs. Commr. of GST and C.Ex, Puducherry 2019-TIOL-1553-CESTAT-MAD. d. Wheels India Ltd. Vs. Commr. of GST and C. Ex, Chennai North 2019 SCC Online CESTAT 46 e. Commr. of C. Ex, Chennai Vs. Lucas TVS Ltd. 2019-TIOL-1254-CESTAT-MAD. f. M/s. Ashok Leyland Foundry Division Vs. Commr. of GST and C. Ex, Chennai 2019-TIOL-1318-CESTAT-MAD. g. M/s. Gulf Oil Lubricants India Ltd. Vs. Commr. of C. Ex and ST, Silvassa 2019-TIOL-1547-CESTAT-AHM 5. On the other hand the learned AR defe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated. 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 . Till amendment of the definition of input service w.e.f. 01.04.2008, the words clearance from the place of removal included transportation charges from the place of removal till it reached the destination, namely the customer. Since the issue is settled in favour of the appellant for the period up to 31.03.2008, we hold that the appellants have rightly availed cenvat credit of ₹ 4,35,84,704/- (Rupees Four Crore Thirty Five Lakhs Eighty Four Thousand Seven Hundred and Four only) for the period up to 31.03.2008 and set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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