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TMI Blog2022 (1) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... transferred . In the present case, the goods are being cleared by the appellants to their buyers on FOR basis and all liabilities in respect of transportation of goods or even damage to goods were on account of the appellants/manufacturer. It is the appellants who were liable for safe delivery of goods up to their customer s door steps. Thus, present becomes the case were the service of GTA was availed for the goods to be supplied to buyers at their door steps under FOR delivery system was taken. These admitted facts are sufficient to hold that the sale in the present case gets complete only at the door steps of buyers. It becomes clear that when the goods are cleared on FOR basis the freight paid on outward transportation would definitely qualify as input service, and thus shall be admissible for Cenvat. In present case, the buyer was retaining the right even to reject the goods with the cumulative reading of definition of place of removal under Rule 4 of Central Excise Rules with the definition of inputs as already discussed above, the buyer s place in the present case is held to be the place of removal. Accordingly, it is held that GTA services availed by the appellant till the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods manufactured and cleared by the appellant took place at the buyers premises which become the place of removal. Since as per the present definition of inputs any service availed up to the place of removal is eligible for CENVAT Credit the transportation services availed by the appellant to the buyers place being the place of removal is therefore, eligible input service. The Original Adjudicating Authority has allowed the credit dropping the proposed demand of Show cause notice. However, Commissioner (Appeals) has failed to appreciate the aforementioned fact of the present case. Learned Counsel has relied upon the decision of Hon'ble Apex Court in the case of Commissioner vs Managalam Cement Ltd. reported as [2018 (16) GSTL J 168 (SC)]. The learned Counsel has laid emphasis on the purchase orders and on the terms and conditions mentioned in the said order. All these purchase orders not only supply the goods on FOR basis with the entitlement of buyers to inspect the goods and to accept / nore subject to said inspection. The order is therefore prayed to be set aside and appeal is prayed to be allowed. 5. To rebut the submissions, learned Departmental Representative impressed up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... motor vehicle, in so far as they relate to a motor vehicle which is not a capital goods; or (BA) service of general insurance business, servicing, repair and maintenance, in so far as they relate to a motor vehicle which is not a capital goods, except when used by - (a) a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person; or (b) an insurance company in respect of a motor vehicle insured or reinsured by such person; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetics and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;" [Emphasis Supplied] 8. From this definition it becomes clear that all services received by the manufacturer directly or indirectly in relation to the manufacture of final products upto the place of removal are admissible for availment of Cenvat Credit on the Service Tax paid for such services. Accordingly, the definition of place of remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture incurred thereafter has to be on buyer's account and cannot be a component which would be included while ascertaining the valuation of the goods manufactured by the buyer. That is the plain meaning Which has to be assigned to Section 4 read with Valuation Rules." 11. Coming to the facts of the present case I observe that the goods are being cleared by the appellants to their buyers on FOR basis and all liabilities in respect of transportation of goods or even damage to goods were on account of the appellants/manufacturer. It is the appellants who were liable for safe delivery of goods up to their customer's door steps. Thus, present becomes the case were the service of GTA was availed for the goods to be supplied to buyers at their door steps under FOR delivery system was taken. These admitted facts are sufficient to hold that the sale in the present case gets complete only at the door steps of buyers. It becomes clear that when the goods are cleared on FOR basis the freight paid on outward transportation would definitely qualify as input service, and thus shall be admissible for Cenvat. 12. Coming to the other facts of the present case, as apparent from various purchase o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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