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TMI Blog2024 (9) TMI 1589X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of automotive tyres at its factory at Limda, Vadodara. The tyres are cleared basically in two segments: (a) Original Equipment Manufacturers ("OEMs") and (b) Replacement Market. The above three appeals only concern the OEMs. The common issue involved in all the three appeals is whether post manufacture and clearance from the factory at Limda, Vadodara and enroute to the premises of the OEM, when the tyres are required to be stored in godowns during transit, whether service tax on godown rent as well as security personnel etc. is an eligible input service. 2. Shri Joseph Kodianthara, learned Senior Advocate with Ms. Shweta Garge appearing on behalf of the appellants on 21.08.2024 submits that the godown rent and expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manshu P Shrimali, learned Superintendent (AR) appearing on behalf of the Revenue reiterated the impugned order. He submits that the supply of excisable goods is on ex-factory basis hence the place of removal is factory gate and all the expenses incurred beyond the factory gate is beyond the place of removal therefore, same are not eligible for Cenvat credit. He placed reliance on the following judgments:- (a) Commissioner of C. Ex., Nagpur vs. Manikgarh Cement Works - 2010 (18) S.T.R. 275 (Tri. - Mumbai) (b) Stanadyne Amalgamations Pvt. Limited vs. Commissioner of C. Ex., Chennai - 2011 (22) S.T.R. 344 (Tri. - Chennai) (c) Maruti Suzuki Limited vs. Commissioner of Central Excise, Delhi-iii - 2009 (240) ELT 641 (S.C.) (d) Ultrate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maximum obligations on the seller and minimum obligations on the buyer. No risk or responsibility is transferred to the buyer until delivery of the goods at the named place of destination. Thus, the seller will be responsible right from loading at seller's premises, transportation, insurance upto the delivery of goods at the buyer's premises. (d) The ownership in the tyres passes on from them to the OEMs only on delivery at their concerned factory. Till such delivery at the factory of OEMs, they remain the owner of the goods. Therefore, there are some instances where the goods are sent back or rejected by OEMs or diverted after their clearance from the factory on the instructions of the OEMs or on their instruction. (e) The O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portation/storage up to the place of removal and clearly qualify as Input Service and therefore entitle them to take credit. On the above contract, the Adjudicating Authority has made his observations as under : - " 4. 10. In this case, from term & conditions of Purchase Order, I find that there is a requirement of delivery at the premises of the OEM for completion of sale. The sale is complete only on such delivery at the premises of the OEM till which time they remain the owners of the goods. The intent of the purchase order was to complete the sale at the premises of the buyer. Thus, in this case the place of removal would be the buyer's premises. " 6. From the above terms and conditions of the supply and the observations of the Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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