2018 (9) TMI 1122 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – courier services for sending the samples of their products to buyers in foreign countries – Department was of the view that these are export of goods as the courier services is akin to outward transportation of finished goods from factory gate to the customer’s premises and therefore is not eligible for credit.
–
Held that:- The samples have been sent free of cost to the prospective buyers. It cannot be said to be removal of finished goods, which involves sale of excisable goods. It is more akin to sales promotion or marketing or advertisement of the product which has been sent to the prospective foreign buyer. The same would fall within the inclusive part of t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ds as the courier services is akin to outward transportation of finished goods from factory gate to the customer s premises and therefore is not eligible for credit. 2. Show Cause Notice was issued proposing to disallow the credit for the periods from January 2012 to December 2014, January 2015 to March 2015 and April 2015 to March 2016. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In Appeal, the Commissioner (Appeals) upheld the same. Hence these appeals. 3. On behalf of the appellant, the Ld.Counsel, Sh.V.Ravindran submitted that the appellant had sent the products to their foreign buyers as sample and this was done only to obtain purchase orders from the prospective foreign buyers
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
. Heard both sides. 6. The counsel for appellant has submitted that the free samples were sent to the prospective foreign buyers as sales promotion / marketing / advertisement for trading and not in any way of transportation of finished goods. I do find the force in the said argument. The samples have been sent free of cost to the prospective buyers. It cannot be said to be removal of finished goods, which involves sale of excisable goods. It is more akin to sales promotion or marketing or advertisement of the product which has been sent to the prospective foreign buyer. The same would fall within the inclusive part of the definition. Thus I find that the disallowance of credit alleging that these are outward transportation services involvi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =