9911796707
TMI Blog2024 (7) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... final products and also avail Cenvat credit of services tax paid on input services. During verification of ER1 returns, it was noticed that the appellant had availed input service credit of service tax paid on the transportation of goods from their factory to the buyer's premises as well as to their own units which were further used in the manufacture. The department was of the view that the transportation was beyond the place of removal and therefore, the appellant is not eligible for Cenvat credit of the service tax paid on such freight charges incurred for transportation. Show case notices were issued for the different periods from July 2011 to November 2011, December 2011 to March 2012, April 2012 to December 2012, January 2013 to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is to be on FOR destination. Further, the appellant has included the freight charges in the assessable value while discharging the excise duty. For these reasons, the credit of service charges incurred for transportation of goods up to the buyer's premises ought to be allowed. It was submitted that in the case of goods delivered to Ashok Leyland, the appellant has not availed credit of the service tax and the amounts in respect of Ashok Leyland are not under dispute in these appeals. The delivery to all customers, except Ashok Leyland Limited has been on FOR basis and the appellant has availed credit of the service tax. 4. The Ld. Counsel referred to the decision of the Larger Bench in the case of M/s. Ramco Cements Ltd versus the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ategorically held that the appellant is eligible for credit. The relevant part reads as follows: - 10. We further notice that the learned Tribunal, after quoting para 7 of the Judgment of the Hon'ble Supreme Court in the case of Ultra Tech not only did not discuss anything about para 11 to 13 of the said Supreme Court decision as quoted above, but also did not give its own findings and reasons as to how the ratio of the Hon'ble Supreme Court Judge was being applied to the facts of the present case where the transport services were involved from Chennai Unit 1 to Jamshedpur Unit 2 of the Assessee only and not to the place of buyer of Composite Unit of Intercooler with Radiators by the Jamshedpur Unit of the Assessee. 11. The star ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Following the decision of the Hon'ble High Court in the appellant's own case, we hold that the credit availed on service tax paid for freight charges incurred for transportation of goods to the appellant's unit at Jamshedpur and Uttarakhand is eligible. The impugned order disallowing the credit, and confirming the demand, interest and imposing penalties on this issue is set aside. 9. The second issue is with regard to the disallowance of credit of service tax paid on freight charges incurred by appellant up to the buyer's premises. The Ld. Counsel has furnished the copies of purchase order, invoices etc. It is also submitted that in case of transportation of goods for M/s. Ashok Leyland Ltd., they have not included the freight ..... X X X X Extracts X X X X X X X X Extracts X X X X
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