The CBEC vide Circular No. 988-12-2014-CX dated 20 October 2014 has issued clarification on the definition of ‘Place of Removal’ for the purpose of availing CENVAT Credit under CENVAT Credit Rules, 2004. The Clarification is enclosed herewith for your kind reference.
Vide Notification No. 21/2014 – CE (NT) dated 11-07-2014, the definition of "place of removal" was inserted in the CENVAT Credit Rules. In terms with the current provision, CENVAT Credit is available only upto place of removal. The aforesaid Circular has clarified the ascertainment of Place of Removal.
Th clarification has been issued since instances have been observed wherein on the basis of the claims of the manufacturer regarding freight charges or who bore the risk of insurance, the place of removal was decided without ascertaining the place where transfer of property in goods has taken place.
It has been reiterated in the Circular that the place of removal needs to be ascertained in term of provisions of Central Excise Act, 1944 read with provisions of the Sale of Goods Act, 1930. Payment of transport, inclusion of transport charges in value, payment of insurance or who bears the risk are not the relevant considerations to ascertain the place of removal, the place where sale has taken place or when the property in goods passes from the seller to the buyer is the relevant consideration to determine the place of removal.
No comments:
Post a Comment