2018 (12) TMI 663 – CESTAT HYDERABAD – TMI – CENVAT Credit – input services – GTA Service for outward transportation of the goods from factory to buyers’ premises – sale on FOR basis – place of removal – Held that:- This issue is no longer res integra and has been settled by the Hon’ble Apex Court in the case of Andhra Sugars Ltd., [2018 (2) TMI 285 – SUPREME COURT OF INDIA] where it was held that Once it is accepted that place of removal is the factory premises of the assessee, outward transportation ‘from the said place’ would clearly amount to input service – credit allowed – appeal allowed – decided in favor of appellant. – Appeal No. E/30718/2018 – A/31559/2018 – Dated:- 11-12-2018 – Mr. P. Venkata Subba Rao, Member (Technical) None f
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dit was availed on outward transportation of the goods from factory to buyers premises as the terms of sale were FOR destination. A show cause notice was issued to them demanding reversal of credit on the ground that the credit is not admissible beyond the place of removal. It further alleged that the outward transportation of the goods has no connection with manufacturing activity and hence the service tax paid is not eligible for credit. The appellant contested the demand on merits. After following due process, the Original Authority confirmed the demand and imposed penalty under Section 11AC of the Central Excise Act read with Rule 15 of CENVAT Credit Rules, 2004. The appellant challenged this order before the First Appellate Authority o
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t period is prior to 01.04.2008 they were eligible for CENVAT credit. ii) The credit on outward transportation of goods is admissible even after amendment of input service w.e.f. 01.04.2008 has held by the Hon ble High Court of Karnataka in the case of ABB [2011 (23) STR 97 (Kar. HC)]. iii) In the case of Gray Gold Cements Ltd., [2014 (34) STR 809] the Hon ble High Court of Andhra Pradesh held that credit on transportation of goods from place of removal upto buyers premises is available on the ground that service tax being a consumption of service tax as owned by the customer. iv) The notice was issued on 08.06.2010 covering the period April, 2006 to June, 2007 and is therefore hit by limitation as there is no evidence that the credit has b
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