Custom, Excise & Service Tax Tribunal
C.C.E., Indore vs M/S. M.B. Foods Pvt. Ltd on 22 January, 2014
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
WEST BLOCK NO.2, R.K. PURAM, NEW DELHI 110 066
Date of Hearing 22.01.2014
For Approval &Signature :
Honble Mrs. Archana Wadhwa, Member (Judicial)
1.
Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
No
2.
Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
No
3.
Whether Lordships wish to see the fair copy of the order?
Seen
4.
Whether order is to be circulated to the Department Authorities?
Yes
Appeal Nos. E/2807 & 2808/2007 -EX[SM]
[Arising out of Order-in-Appeal No.IND-I/143&144/2007, dated 02.08.2007 passed by the C.C.E.(Appeals), Indore-I]
C.C.E., Indore Appellants
Vs.
M/s. M.B. Bakers Pvt. Ltd.
M/s. M.B. Foods Pvt. Ltd. Respondents
Appearance Shri RK Mishra, DR - for the appellants Shri Jatin Mahajan, Advocate - for the respondent CORAM: Honble Mrs. Archana Wadhwa, Member (Judicial) Final Order Nos.__50251-50252___, dated 22.01.2014 Per Honble Mrs. Archana Wadhwa :
Being aggrieved with the order passed by C.C.E.(Appeals), Revenue has filed the present two appeals. After hearing both the sides, I find that the respondents were engaged in the manufacture of biscuits on job work basis for principal manufacturer, M/s. Parle Products Ltd. (M/s. PPL). They were discharging duty liability on the said biscuits on the basis of MRP, i.e., price on which the biscuits were sold by M/s. PPL. They were also availing the benefit of CENVAT credit of service tax paid on outward transportation of goods from their factory to the depots of M/s. PPL.
2. The Revenue initiated the proceedings against them for denial of credit, which culminated into an order passed by the original adjudicating authority confirming the denial of credit. However, on appeal, Commissioner (appeals) has allowed the same by observing as under:-
4. These two appeals are taken up for final disposal after dispensing with the pre-deposit of duty and penalty amounts. On a careful consideration of the submissions made by the Appellants, I find the issue involved in both the appeals is identical namely whether the Service Tax paid on the outward transportation of the finished goods from the factory of the Appellants to the depot of M/s. PPL can be allowed as credit to the Appellants under the Cenvat Credit Rules, 2004. The Adjudicating Authority has disallowed the credit on the ground that the clearance of goods being at the factory gate of Appellants (place of removal), the credit is not permissible for the appellants. However, from the detailed submissions made by the Appellants, it is seen that the transportation cost of the inputs as well as finished goods is borne by M/s. PPL only and that Service Tax relating to both the inputs received by the Appellants as well as Service Tax relating to outward transportation of finished goods is also being paid through the Appellants and that the Service Tax credit is being utilised by the Appellants for payment of excise duty on account of PPL (for payment of duty on finished goods). Further, in the Boards Circular dated 02.02.06 it has been clearly stated that in case of depot sales, credit of Service Tax on transportation will be eligible irrespective of whether goods are chargeable to duty on value under Section 4 or 4A of the Act and therefore credit of Service Tax on GTA services upto the depot of M/s. PPL should be allowed to the Appellants as the goods are being sold by M/s. PPL from the depot only and excise duty has been paid based on MRP printed on the finished goods which are owned by M/s. PPL. Hence the present appeal.
3. I find that an identical dispute about another job worker of M/s. PPL was the subject matter of the Tribunals decision in the case of M.P. Biscuits Pvt. Ltd. Vs. C.C.E., Allahahad [2012 (282) E.L.T. 563 (Tri.-Del.)], wherein the Tribunal observed that the job worker would be entitled to the CENVAT credit of service tax paid on outward transportation of biscuits upto the depot of M/s. PPL. By following the said decision of the Tribunal, I reject both the appeals filed by the Revenue.
(Dictated and pronounced in the Open Court) (Archana Wadhwa) Member (Judicial) SSK -2-