2022 (3) TMI 1160 - AT - Central Excise

CENVAT Credit - input services - outward GTA - place of removal - period prior to 01.04.2008 - Board of Circular No. 97/8/2007-ST dated 23.08.2007 - HELD THAT - Prior to 01.04.2008, the services related to removal of the goods was amended with effect from 01.04.2008 and allowed up to the place of removal . Therefore, the Cenvat credit prima facie is available in case of outward transportation for the services availed from the place of removal up to the customers place. Learned Authorized Representative also agreed upon that Board has prescribed certain conditions for allowing credit which need to be satisfied. Since the adjudicating authority have not verified the fact that, whether the said conditions of Board Circular have been complied with or not, the matter needs to be reconsidered. Appeal is allowed by way of remand to the Adjudicating Authority for passing a fresh order after verifying the documents whether the appellant has fulfilled the condition as prescribed in the Board of Circular No. 97/8/2007-ST dated 23.08.2007.

Summary

Issues:
Whether the appellant is entitled to cenvat credit in respect of outward GTA for the period prior to 01.04.2008.

Analysis:
The appellant argued that prior to 01.04.2008, cenvat credit on outward GTA was available, citing various judgments to support their claim. The main clause of the definition of input was amended from "from the place of removal" to "up to the place of removal" from 01.04.2008, indicating the availability of cenvat credit for outward transportation services up to the customer's place. However, the Revenue contended that certain criteria were required to be fulfilled even before 01.04.2008 for allowing cenvat credit on outward GTA, as per Board Circular No. 97/8/2007-ST dated 23.08.2007. The appellant failed to submit documents to satisfy these criteria, as per the Revenue's submission and reliance on relevant judgments.

The Tribunal carefully considered both sides' submissions and the records. It acknowledged the amendment in services related to the removal of goods from 01.04.2008, allowing cenvat credit up to the place of removal for outward transportation services. However, it agreed with the Revenue that specific conditions prescribed by the Board needed to be met for allowing such credit. As the adjudicating authority did not verify whether the appellant complied with the conditions of the Board Circular, the Tribunal decided to set aside the impugned order and remand the case to the Adjudicating Authority for a fresh order. The Adjudicating Authority was directed to verify the documents to determine if the appellant fulfilled the conditions as prescribed in Board Circular No. 97/8/2007-ST dated 23.08.2007. The appeal was allowed for remand to ensure proper verification and compliance with the prescribed conditions.