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TMI Blog2024 (11) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... dged in the show cause notice as well as by the Adjudicating Authority. The place of removal in FOR destination sales is customer s premises wherein the ownership/property in the goods stands transferred. The Appellant Company also bears the freight charges incurred for outward transportation. The price charged to customers for goods on which central excise duty is paid is inclusive of freight. The Appellant engages transporters for outward transportation of goods and paying freight charges to the transporters. The Appellant also bore the risk of loss/damage during transit till the goods reaches the doorstep of the customers. In this regard, the appellant also taken transit insurance policy. The appellant also paying service tax under rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC)] laid down the test of determining the place of removal whether it is at the factory gate or at a later point of time when the delivery of goods is affected to the buyer at the premises of the buyer and, therefore, observed that the charges which are to be added have to be up to the stage of transfer of the ownership and once the ownership in goods stands transferred to the buyer, any expenditure incurred, thereafter, has to be on account of the buyer and cannot be a component, which would be included while ascertaining the valuation of goods. On the same analogy, the subsequent decision in Commissioner of Central Excise Vs. M/s.EMCO Ltd. [2015(8) TMI 200(SC)] was also decided by the Apex Court allowing the appeal of the assessee. 4. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court in Ultra Tech Cement and also the Circular No. 1065/4/2018 CX dated 08.06.2018, allowed the credit to the appellant on the principle that place of removal is buyer s premises. 5. In the above scenario, the Larger Bench of the Tribunal interpreted the applicability of the decision of the Supreme Court in Ultra Tech Cement (supra) in view of the reference made in M/s Ramco Cement Vs. CCE [Interim Order No.40020/2023 in CE Appeal No.40575 of 2018] and in the latest decision in M/s Sweety Industries Vs. CGST and Central Excise [2024(2) TMI 1393 CESTAT-Ahmd (LB)] concluded as under: 35 . In the result, in a case where clearances of goods are against FOR contract basis, the authority needs to ascertain the place of removal by appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been availing the benefit of cenvat credit facility on service tax paid on freight incurred on outward transportation of cement from factory to the customer s premises and depot to the customer s premises on FOR basis destination sales and utilizing it for payment of central excise duty on cement in terms of the Rules, 2004. The case of the Department was that the appellant is not entitled to avail the cenvat credit of service tax paid on the freight incurred on outward movement of the finished goods, beyond the place of removal i.e. from the factory to the customer s premises as the GTA services for outward transportation of goods beyond the place of removal is not covered within the ambit of the definition of input service for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 (14) STR 3 (P H). The High Court considered the issue in view of the provisions of Circular No.97/8/2007 dated 23.08.2007, which prescribed three conditions as under:- (i) The ownership of goods and the property in the goods remained with the seller of the goods till the delivery of the goods in acceptable condition to the purchaser at his door step; (ii) The seller bore the risk of loss or damage to the goods during transit to the destination; and (iii) The freight charges were an integral part of the price of goods. The High Court, therefore, decided in favour of the appellant that the transportation of the goods upto the customer s premises would also be covered within the definition of input service . 13. No doubt, the said order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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