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2019 (5) TMI 1406 - AT - Central ExciseCENVAT Credit - input services - outward GTA service - HELD THAT - It is found from the purchase order there is no dispute that the supply of excisable goods is on FOR basis the freight is already included in the assessable value on which excise duty was discharged. With this fact the appellant become entitled for the cenvat credit on the outward GTA service - credit allowed - appeal allowed - decided in favor of appellant.
Issues: Entitlement to cenvat credit in respect of outward GTA service.
Analysis: The issue in this case revolves around the entitlement of the appellant for cenvat credit concerning outward GTA service. The appellant argued that the freight was already included in the assessable value of the goods on which excise duty was paid, as per the purchase order which specified the sale on FOR basis. The appellant relied on a previous judgment by the Tribunal in the case of M/s. Salasar Copper to support their claim. The appellant's counsel highlighted that the purchase order clearly indicated that the excisable goods were sold on FOR basis, with the freight already included in the assessable value for excise duty payment. On the other hand, the Revenue representative reiterated the findings of the impugned order. Upon examining the records and arguments presented, the Member (Judicial) noted that there was no dispute regarding the supply of excisable goods being on FOR basis and the inclusion of freight in the assessable value for excise duty payment. Citing the Tribunal's judgment in the case of M/s Salasar Copper, the Member concluded that the appellant was indeed entitled to cenvat credit on outward GTA service based on similar precedents and legal provisions. The Member referenced the Tribunal's decision in various cases such as Sanghi Industries Limited vs. CCE and Ultratech Cement Limited vs. CCE, where the benefit of Cenvat credit on GTA services was allowed under similar circumstances. Additionally, the Member mentioned a Board Circular supporting the grant of Cenvat credit if the sale is on FOR basis. Consequently, the Member declared that the issue was no longer res-integra, and the appellant was entitled to the cenvat credit. As a result, the impugned order was set aside, and the appeal was allowed. The judgment was dictated and pronounced in open court by the Member (Judicial).
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