The Customs, Excises, Service Taxes Appellate Tribunal (CESTAT), Kolkata Bench held that the assessee eligible to avail credit on outward transportation from place of removal upto a certain point, be it a depot or customer’s premises.
The respondent-assessee, M/s Anmol Biscuits Pvt. Ltd. had availed cenvat credit on service tax paid on outward transportation of its finished goods, i.e. biscuits, which were transported up to the customers’ premises during the period from January, 2005 to September 2007.
The show-cause notice was issued alleging suppression of facts etc. The adjudicating authority confirmed the demand along with applicable interest and imposed equal penalty in terms of Rule 15 of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944.
The Commissioner (Appeals) set aside the Order-in- Original and allowed the appeal of the assessee and held that the amendment of the word “from” in the phrase “clearance of final products from the place of removal” to “upto” would not change the position of law as regards outward transportation upto the place of removal.
The Tribunal consisting of Judicial Member, P.K.Choudhary took into consideration the decision of the Supreme Court in the case of CCEx.,Belgaum Vs. Vasavadatta Cements Ltd. wherein it was held that the assessee is legally eligible to avail credit on outward transportation availed from place of removal upto a certain point, whether it is a depot or customer’s premises.
Therefore, the tribunal held that the availment of credit on outward transportation from factory gate to customer’s place pertains to the period prior to April 2008 i.e. prior to the period when the definition of input service was amended. Since the credit eligibility finally stands decided by the Apex Court in favor of the assessee, the impugned order is liable to be sustained.
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