2022 (11) TMI 922 - AT - Central Excise

CENVAT Credit - input services - Outward GTA Services - sale of goods on FOR basis - non-submission of documents showing the sale of goods on FOR basis - HELD THAT - This Tribunal in the appellant s own case BANCO PRODUCTS LTD VERSUS C.C.E. S.T. -VADODARA-I 2021 (7) TMI 662 - CESTAT AHMEDABAD has decided that if the sale is on FOR basis the appellant is entitled for cenvat credit on outward GTA - thus, it is clear that the sale is on FOR basis and the entire risk or loss of damages and the freight charges were borne by the appellant, Therefore, it is a clear case of FOR sale. Accordingly, the facts of this case and the case decided by the Tribunal in the appellants own case are identical. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Entitlement to cenvat credit for Outward GTA Services.

Analysis:
The primary issue in this case was whether the appellant was entitled to cenvat credit for Outward GTA Services. The appellant contended that their sale of goods was on FOR basis, citing a previous order by the Tribunal in their favor. The appellant's counsel argued that the Tribunal had already decided in their favor in a similar case. On the other hand, the Revenue argued that the appellant had not submitted documents proving the sale of goods on FOR basis.

Upon careful consideration, the Tribunal noted that in the appellant's submission, it was evident that the sale was indeed on FOR basis, with the appellant bearing the risk of loss or damage to the goods and the freight charges. This indicated a clear case of FOR sale, making the appellant entitled to cenvat credit. The Tribunal referred to its previous order where it had allowed cenvat credit in a similar case. The Tribunal emphasized that the sale being on FOR basis made the appellant rightfully eligible for Cenvat Credit on outward GTA Services.

The Tribunal further referenced its earlier order, highlighting that the sale being on FOR basis was crucial in determining the entitlement to cenvat credit. The Tribunal reiterated that based on the facts presented and the previous order, the appellant was entitled to the credit. Therefore, the impugned order was set aside, and the appeal was allowed in favor of the appellant.

In conclusion, the Tribunal found that the appellant's case mirrored the previous order where the sale was on FOR basis, leading to the appellant's entitlement to cenvat credit for Outward GTA Services. Following the precedent set by the Tribunal, the impugned order was overturned, and the appeal was granted with consequential relief as per the law. The decision was based on the established principle that in cases of FOR sale, the appellant is rightfully entitled to Cenvat Credit on outward GTA Services.