2018 (1) TMI 708 - AT - Central Excise

CENVAT credit - GTA Services - goods cleared on FOR destination basis - Held that - similar issue decided in the appellant own case of M/s Ultratech Cement Limited 2018 (1) TMI 676 - CESTAT NEW DELHI , where it was held that sales by the assessee were on FOR basis and therefore the assessee had legitimately availed Cenvat credit on the service tax paid on the freight charges borne for its FOR sales - appeal allowed - decided in favor of appellant.

Summary

Issues: Eligibility of Cenvat credit on GTA services paid on goods cleared on FOR destination basis.

Analysis:
The appeal before the Appellate Tribunal CESTAT NEW DELHI was against an order passed by the Commissioner of Central Excise, Udaipur, regarding the eligibility of Cenvat credit on GTA services paid on goods cleared on FOR destination basis. The learned Counsel for the appellant argued that a similar issue had been decided in the appellant's favor in an earlier case. Specifically, the Tribunal had held in the appellant's own case that when the goods are cleared on FOR destination basis and the value of sales includes the freight involved in delivery at the customer's premises, the place of removal would not be at the factory gate but at the customer's premises. The Tribunal had allowed the appeal in the appellant's favor based on this reasoning. In the current case, the Tribunal noted that the appellant's case on the same dispute had already been decided in their favor in a similar set of facts. Therefore, the Tribunal set aside the impugned order and allowed the appeal based on the previous decision and the totality of the facts and circumstances of the case.

In summary, the Tribunal relied on its earlier decision and the specific circumstances of the case to determine that the appellant had legitimately availed Cenvat credit on the Service Tax paid on the freight charges for its FOR sales. The Tribunal set aside the impugned order and allowed the appeal in favor of the appellant.