CENVAT credit on outward freight required fresh examination where delivery terms, risk allocation and price structure supported eligibility.

Eligibility of CENVAT credit on outward transportation from the factory to buyers' premises depended on the pre-amendment treatment of outward freight as an input service, read with the Board circular and the relevant High Court view. The assessee relied on purchase orders and related material showing delivery at buyers' premises, transit risk borne by the seller, and freight included in the price structure. As the earlier finding did not clearly address that evidence and the assessee had not had a full opportunity to present it in light of the governing legal position, the order was set aside and the matter remanded to the original authority for fresh examination of credit eligibility.

---

---

Issues: Whether cenvat credit on outward transportation of goods from the factory to the buyers' premises was admissible for the relevant period and whether the matter should be remanded for fresh examination of the supporting evidence.

Analysis: The dispute turned on the pre-amendment position governing input services for outward transportation, read with the Board circular and the relevant High Court view. The assessee produced purchase orders and other material indicating that the goods were delivered at the buyers' premises, the seller bore the transit risk, and freight formed part of the price structure. Since the earlier finding did not clearly address these materials and the assessee had not had full opportunity to place evidence in light of the circular and the governing legal position, the matter required fresh examination by the original authority.

Conclusion: The impugned order was set aside and the matter was remanded to the original authority for open reconsideration of eligibility to credit.

---