Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Cenvat Credit Rules 2004 – r.2(I) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Cenvat Credit Rules, 2004 – r.2(I) – Cenvat Credit facilityavailed by assessee during the period from January, 2010 to June,2010 on outward transportation of goods through a transportagency from their premises to the customer’s premises – Admissibilityof – Held: Not admissible – It is clear from the bare reading of ther.2(I), as amended in the year 2008, which applies to the period inquestion that the Goods Transport Agency service used for thepurpose of outward transportation of goods, i.e. from the factoryto customer’s premises, is not covered within the ambit of r.2(I) “inputservice” of the Rules – It is only ‘upto the place of removal’ thatservice is treated as input service – Thus, once the final productsare cleared from the factory premises, extending the credit beyondthe point of clearance of final product is not permissible underCenvat Credit Rules and post clearance use of services in transportof manufactured goods cannot be input service for the manufactureof final product.Cenvat Credit Rules, 2004 – r.2(I), as amended in 2008 –Effect of amendment – Held: The original definition of ‘input service’contained in r.2(I) of the Rules,2004 used the expression ‘from theplace of removal’ – However, vide amendment in the year 2008, theword ‘from’ is replaced by the word ‘upto’ – Now as per the originaldefinition, service used by the manufacturer of clearance of finalproducts ‘from the place of removal’ to the warehouse or customer’splace etc., was exigible for Cenvat Credit – However after theamendment, the benefit which was admissible even beyond the placeof removal now gets terminated at the place of removal and doorsto the Cenvat Credit of input tax paid gets closed at that place –The word ‘from’ is the indicator of starting point, whereas theexpression ‘upto’ signifies the terminating point, putting an end tothe transport journey. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2018 INSC 87 |
Petitioner | Commissioner Of Central Excise Service Tax |
Respondent | Ultra Tech Cement Ltd. |
SCR | [2018] 6 S.C.R. 651 |
Judgement Date | 2018-02-01 |
Case Number | 11261 |
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