2024 (10) TMI 48 - AT - Central Excise

Admissibility of credit of service tax paid on Goods Transport Agency Service (GTA) availed by the appellant for outward transportation of goods on Free on Road (FOR) destination basis from the factory gate or depot of the appellant to the premises of the customers - HELD THAT - The Revenue has not disputed that the cement is sold on FOR basis as per the allegations made in the show cause notice. Once the sale is on FOR destination basis, the ownership in the goods gets transferred only at the customer s premises and, therefore, the present appeal needs to be allowed in favour of the appellant. The appellant is entitled to avail the cenvat credit of service tax paid on GTA Services for outward transportation of cement on FOR destination sales from the factory/depot to the customer's premises in terms of Rule 2(l) of Cenvat Credit Rules, 2002 - The impugned order, therefore, deserves to be set aside - Appeal allowed.

Summary

The judgment relates to the admissibility of credit of service tax paid on "Goods Transport Agency Service" for outward transportation of goods on Free on Road FOR destination basis. The appellant, engaged in cement manufacturing, was allowed to avail cenvat credit on such services as the sale was on FOR destination basis. The decision was based on precedents and the appeal was allowed, setting aside the impugned order.