2019 (2) TMI 1419 - AT - Central Excise

CENVAT Credit - input services - outward GTA service - inclusion of freight element in the assessable value - Board s Circular No. 1065/4/18-Cx dated 08.06.2018 - Held that - There is a development by way of Board Circular No. 1065/4/18-Cx dated 08.06.2018, the adjudicating authority has also not verified whether the freight element is included in the assessable value, therefore, the matter needs to be reconsidered by the adjudicating authority - appeal allowed by way of remand.

Summary

Issues: Admissibility of cenvat credit in respect of outward GTA.

Analysis:
The appellant contended that the nature of sale is on FOR basis, and the freight element is included in the assessable value, making the credit admissible as per Board Circular No. 1065/4/18-Cx dated 08.06.2018. The appellant argued that the lower authority did not verify whether the freight was included in the assessable value, citing a similar case remanded for verification. The appellant requested an opportunity to present all relevant documents before the lower authority for consideration.

The Revenue, represented by the Ld. Superintendent (AR), reiterated the findings of the impugned order without providing any new arguments or evidence.

After reviewing the submissions from both parties and examining the records, the Member (Judicial) noted the development through Board Circular No. 1065/4/18-Cx dated 08.06.2018. It was observed that the adjudicating authority had not verified whether the freight element was included in the assessable value. Consequently, the matter was deemed in need of reconsideration by the adjudicating authority. The impugned order was set aside, and the appeal was allowed by way of remand to the adjudicating authority. The adjudicating authority was instructed to conduct a fresh review, considering all documents to be submitted by the appellant and providing a sufficient opportunity for a personal hearing.

In conclusion, the judgment emphasized the importance of verifying the inclusion of the freight element in the assessable value and directed a fresh review by the adjudicating authority in light of the relevant Board Circular and the appellant's submissions.