9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 360 - AT - Service TaxCenvat Credit of Service Tax paid on outward transportation - transactions were on FOR destination basis - appellant plead that they have record to show that their transactions were on FOR basis in the sense that the excise duty had been paid on the value which included the cost of transportation from the factory to the buyer s premises Held that - matter is remanded to the Commissioner (Appeals) for de novo decision after examining the records submitted by the appellant in support of their plea that their transactions were on FOR destination basis. Appeal disposed of.
Issues:
- Eligibility for Cenvat Credit of Service Tax on outward transportation of goods. Analysis: The judgment revolves around the dispute concerning the eligibility of the appellant for Cenvat Credit of Service Tax paid on outward transportation of goods from the factory to the customer's premises. The appellant argued that their transaction value was on FOR basis, including transportation charges, and the risk during transit was theirs. However, the Commissioner (Appeals) disallowed the Cenvat credit and imposed a penalty. The appellant cited the judgment of the Karnataka High Court in support of their case, emphasizing that the transportation charges were part of the transaction value. The respondent contended that for Cenvat credit, the sale must occur at the customer's premises, as per the Karnataka High Court judgment in CCE Vs. ABB Ltd. The Tribunal noted that Cenvat credit for outward transportation is permissible when the sale is on FOR destination basis, as risk during transit is on the assessee and transportation charges are part of the assessable value, as highlighted in the Karnataka High Court judgment and supported by the Punjab & Haryana High Court in Gujarat Ambuja Cements Ltd. Vs. CCE, Ludhiana. The Tribunal remanded the matter to the Commissioner (Appeals) for a fresh decision based on the appellant's evidence supporting their claim of transactions being on FOR destination basis, setting aside the previous order and disposing of the appeal accordingly.
|
