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2019 (6) TMI 9 - AT - Central ExciseCENVAT Credit - input services - outward GTA service - Circular No. 1065/4/2018-CX dated 08.06.2018 - HELD THAT - For allowing the cenvat credit on GTA, certain factual aspects to be verified such as whether the sale is on FOR basis, whether the freight is integral part of the sale price, whether the excise duty paid on the value inclusive of freight amount etc. - the matter needs to be re-considered by the adjudicating authority - appeal allowed by way of remand.
Issues Involved:
Admissibility of cenvat credit in respect of outward GTA service. Analysis: The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Mr. Ramesh Nair, Member (Judicial), revolved around the admissibility of cenvat credit concerning outward GTA service. The appellant's counsel argued that since the sale of excisable goods is on FOR basis, where the title transfers upon receipt by the customer, the credit should be allowed. On the other hand, the Revenue, represented by the Assistant Commissioner, supported the Commissioner's order. The Tribunal noted the issuance of Circular No. 1065/4/2018-CX by the Board post the impugned order. Referring to similar cases involving Ultratech Cement Ltd and Sanghi Industries Ltd, the Tribunal emphasized the need to verify factual aspects like the sale basis, freight's role in the sale price, and excise duty payment inclusive of freight. Consequently, the Tribunal concluded that a re-examination by the adjudicating authority was necessary in light of recent developments, setting aside the impugned order for a fresh decision. This detailed analysis underscores the Tribunal's thorough consideration of the evolving legal landscape and the necessity to verify specific factual elements before determining the admissibility of cenvat credit for outward GTA services. The judgment reflects a commitment to ensuring a comprehensive review based on recent developments and industry practices, highlighting the importance of factual accuracy in such tax-related matters.
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