Commissioner of Central Excise Belgaum vs M/s. Vasavadatta Cements Ltd.

Court

Supreme Court of India

Date

17 January 2018

Case No.

Civil Appeal No. 11710 of 2016

Result

Disposed

Bench

A.K. Sikri, Ashok Bhushan

Citation

[2018] 1 S.C.R. 814 : 2018 INSC 30

Headnote

CENVAT Credit Rules, 2004:

r. 2(1) – CENVAT credit – Entitlement to – On input service. i.e. tax paid on transportation of final products from the place of removal to depots or the buyers premises – Held: Assessee is entitled to CENAT credit on the 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.

Dismissing the appeal of the Revenue and allowing those of the assessees, the Court

HELD: The expression used in r. 2(1) of CENVAT Credit Rules, 2004 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 be allowed. This view gets support from the amendment which has been carried out w.e.f. 01.04.2008 whereby the aforesaid expression “from the place of removal” is substituted by “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 may be. Appeals are bereft of any merit and are accordingly dismissed. [Paras 7, 8 and 9] [819-EG; 820-B]

The Judgment of the Court was delivered by A. K. SIKRI, J. C.A Nos. 11710/2016,C.A. No. 11923/2016, C.A. No. 11914/2016, C.A. No. 11898/2016, C.A. No. 11899/2016, C.A. No. 11919/2016, C.A. No. 11904/2016, C.A. No. 11925/2016, C.A. No. 11870/2016, C.A. No. 11924/2016, C.A. No. 11900-11901/2016, C.A. No. 11909/2016, C.A. No. 11402/2016, C.A. No. 11403/2016, C.A. No. 11947/2016, C.A. No. 11946/2016, C.A. No. 11920/2016, C.A. No. 11874/2016, C.A. No. 11903/2016, C.A. No. 10300/2011, C.A. No. 11913/2016, C.A. No. 11399/2016, C.A. No. 11401/2016, C.A. No. 11902/2016, C.A. No. 11877-11884/2016, C.A

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