2019 (4) TMI 11 - AT - Central Excise

CENVAT Credit - input services - GTA services - period October 2015 to June 2016 - Held that - Board Circular No. 1065/4/2018-CX dated 08.06.2018 clarified that credit of service tax paid on GTA services where goods are supplied on FOR basis, Cenvat credit cannot be denied for the reasons that the said service has been availed for the transportation of goods beyond the place of removal - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Denial of Cenvat credit on GTA services availed during October 2015 to June 2016.

Analysis:
The appeal was filed against the denial of Cenvat credit on GTA services. The appellant argued that goods were supplied on a Free on Road (FOR) basis, supported by certificates from a Chartered Accountant and Cost Accountant. The order-in-original confirmed the sale was on FOR basis, which was not challenged in the impugned order. The appellant cited precedents like Sanghi Industries Limited and Ultratech Cement Limited cases where Cenvat credit on GTA services was allowed in similar circumstances. Reference was made to a Board Circular supporting Cenvat credit for sales on FOR basis. The Tribunal noted that if goods are supplied on FOR basis, Cenvat credit cannot be denied even if the transportation of goods extends beyond the place of removal. Consequently, the appeal was allowed, emphasizing the legal position and precedents cited.

This judgment revolves around the denial of Cenvat credit on GTA services availed during a specific period. The key argument focused on the nature of sales being on FOR basis, supported by professional certificates. The Tribunal highlighted the importance of precedents and legal principles in determining the admissibility of Cenvat credit. The appellant's reliance on past cases and a relevant Board Circular played a crucial role in the decision. The Tribunal's analysis emphasized the significance of the sale being on FOR basis in determining the eligibility for Cenvat credit, ultimately leading to the allowance of the appeal.

The Tribunal's decision in this case underscores the importance of establishing the nature of sales, particularly when claiming Cenvat credit on GTA services. The judgment relied on legal precedents and a Board Circular to support the appellant's argument regarding sales on FOR basis. By emphasizing the legal position and citing relevant cases, the Tribunal provided a clear rationale for allowing the appeal. This case serves as a reminder of the need to substantiate claims for Cenvat credit with supporting evidence and legal principles, especially concerning the nature of sales and related documentation.