HEG LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) IN the instant case, the applicant availed cenvat credit on Service Tax paid on the service of goods transport agency utilized for outward transportation of goods for the period January, 2005 to September 2005.

(2.) THE lower authorities observed that since the finished goods were removed from the factory of the applicant on payment of duty, 'Place of removal' as per Section 4(3)(c)(i) of Central Excise Act, 1944 would be at 'factory gate' Hence, the service of goods transport agency for transportation of finished goods after their clearance beyond the place of removal i.e. factory gate did not appear to be input service as defined under Rule 2(1) of Cenvat Credit Rules, 2004, and, therefore, the applicants are not entitled to take Cenvat credit on service tax paid by them on goods for transportation of finished goods after their clearance beyond the place of removal i.e. factory gate.

(3.) THE learned advocate on behalf of the applicant submits that the Commissioner of Central Excise and Customs (Appeals) Indore on the same issue allowed the Cenvat Credit in the case of Re: NHK Spring India Ltd. reported in 2006 (204) ELT 189 (Commr -Appl). He also produced a photo copy of order -in -appeal No. 228/2006 -CE dated 21.7.06 passed by the Commissioner of Central Excise (Appeals), Mangalore in favour of the assessee on the very same issue. Ld. Advocate, further, submits that this Tribunal in the case of Universal Cables Ltd. v. CCE, Bhopal, vide Stay order No. 1112/06 -SM dated 7.11.06 allowed the stay petition in respect of denial of Cenvat credit on courier services and internet services utilized by them for despatch of final products. Hence, he prays for unconditional stay of pre -deposit of duty and penalty.