Order Date – 12 January 2023

Parties: M/s Rolex Pvt Ltd Vs C.C.E. & S.T.-Rajkot

Facts – 

• The Appellant, M/s Rolex Pvt Ltd was received warehousing service and inspection service and payment of the same was also borne by the appellant. These charges were not collected by the appellant from the customers.

Issue – 

• Whether the appellant is entitled to CENVAT Credit on inspection and warehousing services?

Order –

• The Tribunal relied on the decision of the appellants own case in which it was held that since the warehousing facility availed by the appellant for storing the goods and from there the goods were sold to the customer, it cannot be said that the goods were sold from the factory gate. 
• Moreover, the inspection charge is not a service which is used for removal of the goods. The expenses towards both the services stand included in the assessable value. Therefore both the services were clearly used in or in relation to the manufacture and sale of the goods.
• Hence the Tribunal held that as no separate charges have collected for the said services of inspection and warehousing. In these facts, it is apparent that such cost are included in the assessable value of goods cleared by them. 
• Therefore in these circumstances CENVAT Credit cannot be denied.
• The appeal is allowed.