Custom, Excise & Service Tax Tribunal
Esdee Paints Ltd vs Commissioner Of Central Excise And on 19 January, 2018
In The Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad ~~~~~ Appeal No : ST/12071/2017 (Arising out of AHM-EXCUS-002-APP-78-17-18 dated 29.08.2017 passed by Commissioner (Appeals-II) of Central Excise, and Service Tax- Ahmedabad) Esdee Paints Ltd. : Appellant (s) Vs Commissioner of Central Excise and Service Tax, - Ahmedabad : Respondent (s)
Represented by:
For Appellant (s) : Shri V. R. Joshi, Advocate For Respondent (s): Shri Sameer Chitkara, AR CORAM :
Dr. D. M. Misra, Hon'ble Member (Judicial) Date of Hearing/Decision: 19.01.2018 ORDER No. A/10233/2018 Per : Dr. D. M. Misra Heard both sides.
2. This is an appeal filed against the order-in-appeal No. AHM-EXCUS-002-APP-78-17-18 dated 29.08.2017 passed by Commissioner (Appeals-II) of Central Excise, and Service Tax- Ahmedabad.
3. The short issue involved in the present appeal is: whether the appellant are entitled to avail Cenvat credit of Rs. 1,44,227/- of the service tax paid on Renting of Immovable Property, namely, godowns/depots from where the goods are ultimately sold by the appellant.
4. The Ld. Advocate Shri V. R. Joshi for the appellant submits that the authorities below has denied the credit of service tax paid on rental charges on godowns/depots observing that the finished goods being sold on MRP basis, therefore, the place of removal should be the factory gate. It is his contention that the issue is covered by the judgement of Honble Chhattisgarh High Court in the case of Ultratech Cement Ltd. Vs. Commissioner of Central Excise, Raipur 2014 (307) ELT 3 (Chhattisgarh).
5. Ld. AR for the Revenue reiterated the findings of the Ld. Commissioner (Appeals).
6. I find that there is no dispute of the fact that the appellant had cleared the finished goods to their godowns/depots from where the goods are sold. Thus, in view of the Judgement of the Honble Chhattisgarh High Court in Ultratech Cement Ltds case (supra) merely, because the finished goods attract assessment on MRP basis and accordingly the place of removal cannot be considered as the factory gate is unsustainable in law. Following the said precedent, therefore, the appellant are entitled to avail Cenvat of service tax paid in relation to renting of immovable property of godowns/depots. In the result, the impugned order is set-aside and the appeal is allowed.
(Dictated and pronounced in the open Court) (D. M. Misra) Member (Judicial) G.Y. 2 Appeal No.ST/12071/2017