2019 (4) TMI 1949

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..... e is wholly interpretational in nature. Accordingly, the penalty imposed is set aside. Appeal allowed in part.
SHRI ANIL CHOUDHARY, MEMBER (JUDICIAL) Shri A.H. Ansari, Advocate for the appellant Shri P.R. Gupta & Shri K. Poddar, Authorised Representatives for the respondent ORDER Heard the parties. The issue in this appeal is whether the appellant in the facts and circumstances, is entitled to cenvat credit on output transportation charges incurred by them, for delivery of their excisable goods from factory to the premises of the buyer. 2. The admitted facts are that the appellant is manufacturer of insulators, which are sold directly to the companies or buyers under the purchase orders, the terms are FOR destination. Further, such .....

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..... 5 of the Cenvat Credit Rules. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals), who vide impugned order was pleased to dismiss the appeal. 4. Being aggrieved, the appellant is before this Tribunal. 5. Ld. Counsel for the appellant states that as the appellant is required to deliver the goods in good condition at the door of the buyer, there is risk in transit. It is of no consequence, that the transportation charges or freight are being reimbursed by the buyer. Further, he relies on the Coordinate Bench's Ruling of this Tribunal in the case of Shubhalakshmi Polyesters Ltd. - 2017 (5) GSTL 310 (Tribunal-Ahmd.), wherein it was held that Cenvat Credit Rules allows the credit of duty incurred in or in relation .....

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..... portation charges along with insurance charges has been reimbursed to the appellant by the buyer of the goods. In such circumstances, admittedly, sale value or transaction value does not include the freight element and accordingly, the cenvat credit has been rightly disallowed. 10. Having considered the rival contentions, in the facts and circumstances, that the transportation and insurance charges are reimbursed by the buyer of the goods and do not form part of the sale value or transaction value, I hold that the appellant is not entitled to cenvat credit on the outward GTA service received. However, in the facts and circumstances, I find that the issue is wholly interpretational in nature. Accordingly, the penalty imposed is set aside. T .....

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