WELSPUN MAXSTEEL LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appeals and stay applications are directed against Order -in -Appeal No. US/81/RGD/2012, dated 10 -2 -2012 and US/285/RGD/2012, dated 30 -4 -2012 passed by the Commissioner of Central Excise & Customs (Appeals), Mumbai -II. As the issues involved in both the appeals are common, they are taken up together for consideration and disposal.

(2.) The issue in the case relates to eligibility for the CENVAT credit of service tax paid on port charges by the appellant M/s. Welspun Maxsteel Ltd., in respect of outward transportation of the finished products from the factory. The period involved is on or after 1 -4 -2008, in both the cases. The department was of the view that since the place of removal of the goods is the factory, CENVAT credit of the service tax paid on outward transportation would not be available after 1 -4 -2008 as the rule has been amended so as to provide that in respect of "input services" only the services which are availed up to the place of removal are eligible for the benefit of CENVAT credit. Accordingly, notices were issued to the appellant proposing to deny the credit taken on the charges and the same were confirmed against the appellant along with interest thereon. The appellant was also imposed with equivalent amount of penalties. The appellant preferred appeals before the lower appellate authority who dismissed their appeals and hence, the appellant is before me.

(3.) THE learned Counsel for the appellant submits that the expenditure has been incurred in respect of outward transportation of the goods after their removal from the factory. The learned Advocate also submits that the cost of transportation also does not form part of the assessable value of the goods cleared. However, he fairly concedes that after the decision of the Hon'ble Karnataka High Court in the case of Commissioner of Central Excise v. ABB Ltd. as reported in : 2011 (23) S.T.R. 97 (Kar.) for the period on or after 1 -4 -2008, they are not eligible for the credit.