CCE Vs. ABC BEARINGS LTD.

JUDGEMENT

(1.) THE facts of the case, in brief, are that the appellants are registered under service tax for the category 'Goods Transport Agency (GTA)' service. During the audit of records it was noticed that the appellants took total cenvat credit of Rs. 13,60,872/ - on the service tax paid on outward transportation of goods during the period February 2005 to January 2008. The said availment of cenvat credit of service tax appeared incorrect since outward GTA service was not an output service of the appellants. Therefore a show cause notice dated 11.06.2008 was issued proposing to deny the cenvat credit of Rs. 13,60,872/ - along with interest. The show cause notices also proposed imposition of penalty under Rule 15 of the Cenvat Credit Rules, 2004.

(2.) THE said show cause notice was adjudicated vide the impugned order dated 22.10.2008, confirming the demand of Rs. 9,08,283/ - along with interest. The order dropped the demand of 4,52,589/ -, imposed penalty of Rs. 9,08,283/ - under Rule 15 of the Cenvat Credit Rules, 2004.

(3.) LEARNED DR on behalf of Revenue submitted that the Commissioner has not taken note of the fact that in this case buyers' premises cannot be considered as place of removal and therefore the application of the circular of the Board relied upon issued by the Commissioner and his decision to allow the cenvat credit is wrong.