Case Law Details

Case Name : MRF Ltd. Vs Commissioner of GST & CE (CESTAT Chennai)
Appeal Number : Excise Appeal No. 40475 of 2020
Date of Judgement/Order : 27/04/2021
Related Assessment Year :

MRF Ltd. Vs Commissioner of GST & CE (CESTAT Chennai)

Commissioner (Appeals) has noted that appellants have included the freight charges in the assessable value and discharged excise duty on the same. In such circumstances, the appellants would be eligible to avail credit of the service tax paid on such freight charges for outward transportation of goods upto the buyer’s premises. The said issue has been analyzed by the Division Bench of the Tribunal at Ahmedabad in the case of Ultratech Cement Ltd. Vs CCE – 2019 (2) TMI 1487. It is also submitted by the Ld. Counsel that said decision has been upheld by the High Court of Gujarat vide R/Tax Appeal Nos.691 of 2019, 698 of 2019 and 690 of 2019 all dated 23.01.2020. Following the above decisions, I am of the view that the demand cannot sustain. The impugned orders are set aside.

FULL TEXT OF THE CESTAT JUDGEMENT

The issue that arises for consideration in these appeals is whether the service tax paid on GTA services availed for transportation of goods from the factory to the customer’s premises is eligible for cenvat credit or not.

2. When the matter came up for hearing, the Ld. Counsel Shri Karthik Sundaram for the appellant submitted that the very same issue has been held in favour of the appellants in their own case vide Final Order No.40934-40938/2019 dated 18.07.2019. The said final order was amended / rectified vide Miscellaneous Order No.40651-40655/2019 dated 04.11.2019.

3. The Ld. A.R Shri Vikas Jhajharia supported the findings in the impugned orders.

4. On perusal of records and after hearing the submissions from both sides, I find that the issue stands covered by the decision of the Tribunal in the appellant’s own case. Further, in page 8 of the impugned orders, the Commissioner (Appeals) has noted that appellants have included the freight charges in the assessable value and discharged excise duty on the same. In such circumstances, the appellants would be eligible to avail credit of the service tax paid on such freight charges for outward transportation of goods upto the buyer’s premises. The said issue has been analyzed by the Division Bench of the Tribunal at Ahmedabad in the case of Ultratech Cement Ltd. Vs CCE – 2019 (2) TMI 1487. It is also submitted by the Ld. Counsel that said decision has been upheld by the High Court of Gujarat vide R/Tax Appeal Nos.691 of 2019, 698 of 2019 and 690 of 2019 all dated 23.01.2020. Following the above decisions, I am of the view that the demand cannot sustain. The impugned orders are set aside. The appeals are allowed with consequential relief, if any, as per law.

(Dictated and pronounced in open Court)

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