2016 (11) TMI 92 - AT - Central Excise

Cenvat credit - GTA - Notification No. 10/2008-CE (NT) dated 01/3/2008 - Held that - Since these are in the nature of input services for which the service tax also has been paid by the appellant, they will be entitled to the Cenvat credit. However, for purposes of verification of these bills it would be necessary to remand the matter to the original Adjudicating Authority for verification before allowing Cenvat credit for inward transportation. In the sample purchase order perused, I find that the terms and conditions of the contract state that the price agreed is for delivery at the premises of the customer and that the price is CIF - the various purchase orders need be verified to confirm the terms whether they are similar to the purchase order produce before me - Appeal allowed by way of remand.

Summary

Issues: Disallowance of Cenvat credit on input services for freight, verification of inward transportation details, eligibility of Cenvat credit on outward transportation.

Analysis:
1. Disallowance of Cenvat Credit on Input Services for Freight:
The appellant, a manufacturing unit, appealed against the disallowance of Cenvat credit on service tax paid on freight for outward transportation. The Commissioner (Appeals) allowed partial credit, leading to the dispute over the disallowed amount. The appellant argued that a portion of the disallowed amount pertained to service tax on inward transportation of raw materials. Although full details were not initially submitted, the appellant later provided evidence to support this claim. However, the First Appellate Authority did not consider these details. The Tribunal noted the necessity of verifying these claims and remanded the matter to the original Adjudicating Authority for further examination.

2. Verification of Inward Transportation Details:
The appellant submitted transporter bills and other documents to establish that the service tax paid on transportation of raw materials was for inward transportation. The Tribunal acknowledged these documents as input services eligible for Cenvat credit. However, to ensure accuracy, it directed a remand to the original Adjudicating Authority for verification before allowing Cenvat credit for inward transportation.

3. Eligibility of Cenvat Credit on Outward Transportation:
Regarding the eligibility of Cenvat credit on outward transportation, the appellant presented a purchase order indicating CIF terms for delivery at the customer's premises. The Tribunal referred to an amendment specifying that credit for outward transportation is only eligible up to the place of removal. After reviewing the purchase order terms, the Tribunal found merit in the appellant's claim for Cenvat credit on outward transportation. However, to confirm consistency across various purchase orders, the Tribunal ordered a remand to the original Adjudicating Authority for further verification. The appellant was directed to provide necessary documents to support their claim.

In conclusion, the Tribunal allowed the appeal by way of remand, emphasizing the need for thorough verification of details related to both inward and outward transportation for the proper allowance of Cenvat credit.