Nandan Petrochem Ltd vs C.C.E and ST - (Customs, Excise and Service Tax Appellate Tribunal) (28 Apr 2021)
Cenvat Credit on Outward Transportation Services is admissible up to the place of removal
The issue involved in the present case is that whether the Appellant is entitled for Cenvat Credit in respect of Outward Transport Service which is used for transportation of goods from the factory of the appellant to their various depots.
The Appellant submits that, it is admitted even by the Adjudicating Authority that, the transportation service in question is from the factory gate to depot. Therefore, the outward transportation service was used up to the place of removal. He submits that, moreover the valuation of the goods is on MRP basis under Section 4A of Central Excise Act, 1944, for this reason also the Cenvat credit on outward transportation service in respect of goods supplied under MRP based valuation is admissible.
There is no dispute that, in the present case Outward Transportation Service was used for transportation of goods from the factory of the appellant to their own depot. In this case even as per Section 4 of the Central Excise Act, the place of removal is the depot and not the factory gate. Moreover, the valuation of goods is on MRP basis.
In such circumstances, as per the plain reading of the Input Service definition Cenvat Credit on Outward Transportation Services is admissible up to the place of removal. In the present case depot being the place of removal, outward transportation service was used undisputedly up to the place of removal. The judgment of this tribunal cited by the learned Counsel is directly applicable in the facts of the present case. Therefore, the Appellant are entitled for the Cenvat Credit in respect of the Outward Transportation Service. The impugned order is set aside and appeals are allowed.
Tags : CENVAT CREDIT ENTITLEMENT