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2022 (3) TMI 500 - AT - Central ExciseRefund of CENVAT Credit - input services - outward GTA - the amount of CENVAT amount has been reversed - HELD THAT - This Tribunal in M/S SANGHI INDUSTRIES LTD. VERSUS C.C.E. KUTCH (GANDHIDHAM) 2019 (2) TMI 1488 - CESTAT AHMEDABAD held that in a case where the sale is on FOR basis, freight is borne by the supplier of goods and the freight is inclusive in assessable value on which excise duty is paid, CENVAT credit is admissible. Therefore, if the above facts are satisfied then the appellant s are entitled for the CENVAT credit on outward GTA. As regard the facts of the case, Adjudicating Authority should verify the fact that the price is inclusive of freight and the same was not charged separately. If the Adjudicating Authority is satisfied on the above condition, then the appellant shall be eligible for CENVAT credit and consequential refund. The appeals are allowed by way of remand to Adjudicating Authority for passing a fresh order.
Issues Involved:
Entitlement to CENVAT credit for outward GTA services and eligibility for refund. Analysis: The judgment addresses the issue of whether the appellant is entitled to CENVAT credit for outward GTA services and if they are eligible for a refund of the same amount that has been reversed. The appellant argued that they used GTA services for the removal of excisable goods on a FOR sale basis, where the freight was borne by them and included in the price of the goods on which excise duty was paid. The appellant relied on previous tribunal judgments and High Court decisions to support their claim for CENVAT credit. The Revenue representative raised doubts regarding the pricing structure and the inclusion of freight in the sale price, emphasizing the need for verification. Upon reviewing the submissions and records, the Tribunal found that the Commissioner (Appeals) had denied CENVAT credit for GTA services based on a Supreme Court judgment. However, the Tribunal held that in cases where the sale is on a FOR basis and the freight is borne by the supplier and included in the assessable value for excise duty, CENVAT credit is admissible. The Tribunal highlighted the need for verification regarding the contradictory information in the purchase orders and the inclusion of freight in the sale price. The Tribunal also noted that the Adjudicating Authority admitted that the sale was on a door delivery basis, indicating that the freight was inclusive in the sale price. The Tribunal referred to a High Court judgment to establish the legal position on the issue and directed the Adjudicating Authority to verify if the price was indeed inclusive of freight and not charged separately. If the Authority confirms this condition, the appellant would be eligible for CENVAT credit and a refund. Consequently, the Tribunal set aside the impugned orders and remanded the case to the Adjudicating Authority for a fresh decision within three months from the date of the order.
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