Case: COMMISSIONER OF CENTRAL EXCISE BELGAUM Vs. M/S. VASAVADATTA CEMENTS LTD

These appeals are preferred by the Central Excise Department against the judgment and order passed by the Customs, Excise & Service Tax Appellate Tribunal (herein after referred to aswhereby the CESTAT has allowed to the respondents (hereinafter referred to aCENVAT credit on goods transport agency service availed for transport of goods from the place of removal to depots or the buyers premises. The lead judgment was given by the CESTAT in the case of Commissioner of Central Excise & S.T Unit Bangalore vs. M/s. ABB Limited. The aforesaid judgment dated 18.05.2009 has been upheld by the Karnataka High Court vide judgment dated 23.03.2011. This judgment has been followed in all other cases.

Reasoning:
The aforesaid approach of the Full Bench of the CESTAT, as affirmed by the High Court, appears to be perfectly correct and we do not find any errormentioned above, the expression used in the aforesaid Rule is?from the place of removal?.It has to be from the place of removal upto a certain point. Therefore, tax paid on the transportation of the final product from the place of removal upto the first point, whether it is depot or the customer, has to beview gets support from the amendment which has been carried out by the rule making authority w.e.f. 01.04.2008 vide Notification No. 10/2008CE(NT) dated 01.03.2008 whereby the aforesaid expression?from the place of removal?is substituted b?upto the place of removal?.Thus from 01.04.2008, with the aforesaid amendment, the CENVAT credit is available only upto the place of removal whereas as per the amended Rule from the place of removal which has to be upto either the place of depot or the place of customer, as the case mayfind that the CESTAT had rejected the appeal of the appellant on the ground that there is a delay of 85 days and this order has been upheld by the High Court as well. Otherwise, we find that the legal issue raised in this appeal has been decided by the same Bench of the Karnataka High Court in favour of the assessee and that order has been upheld by by this Bench in the above matters i.e. Commissioner of Central Excise Belgaum Versus M/S. Vasavadatta Cements Ltd.(Civil Appeal No(S). 11710/2016 & other connected matters) preferred by the Department. For these reasons, we condone the delay in filing the appeal before the CESTAT. We find that the appellant is also entitled to the benefit of the judgment of this Court.