TMI Blog2020 (7) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... actory to the buyer s premises when the sale was on FOR destination basis. The assessee challenged the order of the original authority and the Commissioner (Appeals), relying on the Board Circular dated 23.08.2007 has held that the appellant is entitled to the benefit of CENVAT credit on the outward transportation of goods up to the buyer s premises. This order of the Commissioner (Appeals) was also upheld by the Hon ble CESTAT, Bangalore and Hon ble High Court of Karnataka. The Hon ble Apex Court has laid down that where the goods are sold on FOR destination basis i.e., where the ownership of the goods gets transferred only at the buyer s premises also no CENVAT credit is admissible for transportation of goods to the buyer s premises. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Ispat Industries [2015 (324) ELT 670 (SC)]. Therefore, no CENVAT credit is admissible on the outward transportation of goods from the assessee s premises to the buyer s premises even though the sale of goods is on FOR destination basis. 4. We find that an identical matter was before the Hon ble Apex Court in the case of CCE and ST Vs Ultra Tech Cement [2018 (9) GSTL 337 (SC)]. It has been decided by the Hon ble Apex Court that no CENVAT credit is admissible for transport of goods by the assessee to the buyer s premises. 5. Briefly, the appellant is a manufacturer of cement and also avails the benefit of CENVAT credit under CENVAT Credit Rules, 2004. CENVAT credit is available on the inputs and input services which are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Act, 1944 as follows: (c) place of removal means - (i) a factory or any other place or premises of production or manufacture of the excisable goods; (ii) a warehouse or any other place on premises wherein the excisable goods have been permitted to be deposited without 3[payment of duty; (iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory;] from where such goods are removed. The same definition was introduced in CENVAT Credit Rules post 11.07.2014. The appellant s appeal is on the following grounds: a) Service on outward transportation used by the appellant qualifies as input service in terms of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cating Authority was upset by the Commissioner (Appeals) principally on the ground that the Board in its Circular dated August 23, 2007 had clarified the definition of place of removal and the three conditions contained therein stood satisfied insofar as the case of the respondent is concerned, i.e. (i) regarding ownership of the goods till the delivery of the goods at the purchaser s door step; (ii) seller bearing the risk of or loss or damage to the goods during transit to the destination and; (iii) freight charges to be integral part of the price of the goods. This approach of the Commissioner (Appeals) has been approved by the CESTAT as well as by the High Court. This was the main argument advanced by the learned counsel for the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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