CENVAT credit for outward GTA transportation was admissible where removal extended to the customer's premises or export port.

CENVAT credit on Service Tax paid for Goods Transport Agency services used to move final products to the customer's premises or the port of export was admissible where the contractual documents showed free delivery, FOB destination, or delivery charges inclusive. On those facts, the place of removal extended beyond the factory gate, ownership remained with the manufacturer until delivery, and outward transportation up to the agreed destination qualified as an input service. The Tribunal upheld this reasoning and found no infirmity in allowing credit.

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Issues: Whether CENVAT credit of Service Tax paid on Goods Transport Agency services used for transportation of final products up to the customer's premises or the port of export was admissible when the place of removal was found to be beyond the factory gate.

Analysis: The appellate authority had examined the invoices, purchase orders and insurance documents and found that the delivery terms showed free delivery, FOB destination, delivery charges inclusive, or delivery at the buyer's premises. On that basis, it held that the price included transportation charges and that ownership of the goods remained with the manufacturer until delivery at the agreed destination. The authority also relied on the departmental circular and the supporting judicial view that where transportation cost forms part of the value and delivery is completed only at the buyer's premises or port of export, outward transportation up to that point qualifies as an eligible input service. The Tribunal found no infirmity in that reasoning.

Conclusion: CENVAT credit on GTA services for transportation up to the customer's premises or port of export was admissible, and the Revenue's challenge failed.

Ratio Decidendi: Where the contractual terms and supporting documents show that the place of removal is the buyer's premises or the port of export, outward transportation up to that point is an input service eligible for CENVAT credit.

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