A.K.SIKRI,J. - (1.) The question of law which needs determination in all these appeals is identical. It pertains to Cenvat Credit in respect of service tax paid on goods that are transported to the purchaser after the sale. The question, therefore, which needs determination is as to whether the expression 'input service' as defined in Rule 2(l) of the Cenvat Credit Rules, 2004 (hereinafter referred to as the 'Rules, 2004'), in the context of a service provider, would also include services which are used in or in relation to providing taxation output services described in the definition and the outward transportation to the purchaser would be treated as beyond the 'place of removal'.
(2.) For the sake of convenience, we may reproduce the events from Civil Appeal No. 11711 of 2011. The respondent M/s. Andhra Sugars Ltd. are the manufacturers of sugar, molasses etc. at their Tanuku, Taduvai & Bhimadole units and manufacturers of various inorganic chemicals at their Kovvur and Saggonda units. They were availing credit on inputs, capital goods and input services and utlising the same for payment of duty. It came to the notice of the Revenue that during the periods December, 2007, the respondent at their unit Saggonda, had taken credit of input services namely service tax paid on transportation charges upto the place of customers which according to the Revenue is inadmissible. Accordingly, show cause notice dated November 3, 2008 was issued to the respondent demanding the Cenvat Credit of Rs.3,87,763/- availed during the above mentioned period along with interest and proposing to impose penalty under Rule 15 of the Rules, 2004. The aforesaid show cause notice was duly adjudicated by the Assistant Commissioner, Eluru Division vide Order-in-Original No. 01/2009 dated January 9, 2009 confirming the demands initiated in the aforesaid show cause notice.
(3.) The respondent being aggrieved by the Order-in-Original No. 01/2009 dated January 9, 2009 filed appeal before the Commissioner (Appeals), Guntur. Vide Order-in-Appeal Nos. 46/2011 (G) ST dated December 2, 2011, allowed the appeals by setting aside the Order-in-Original with consequential relief to the respondent. The Revenue challenged the Order-in-Appeal No. 46 of 2011 (G) ST dated December 2, 2011 by preferring appeal bearing Appeal No. E/510/2012-DB before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore. The CESTAT vide final Order No. 26346/2013 dated August 14, 2013 dismissed the appeal filed by the Revenue holding that the same is covered by the decision of the High Court of Karnataka in the case of Commissioner of Central Excise and Service Tax, Bangalore v. ABB Ltd., Vadodara; 2011 (23) STR 97 (Kar). Further, the CESTAT observed that the Revenue could not have filed appeals as per the instructions of the CBEC vide Circular F. No. 390/Misc./163/2010-JC dated August 17, 2011, as the amount involved is less than Rs.5 lakhs. Not satisfied with this outcome, the Revenue took the matter to the High Court in the form of Appeal No. 88/2014. The High Court vide its impugned judgment dated July 16, 2014 has dismissed the appeal filed by the Revenue holding that "on an identical issue, this Court dismissed Central Excise Appeal No. 31 of 2013. Hence, this appeal is also dismissed.";