Cenvat credit on GTA service allowed for FOR destination sales where buyer's premises was treated as the place of removal.

Cenvat credit of service tax paid on GTA services was treated as admissible in a FOR destination sale arrangement where the price covered delivery up to the buyer's premises and ownership in the goods remained with the manufacturer until such delivery. Applying the departmental circular on GTA credit in FOR transactions, the place of removal was treated as the buyer's premises because the tender terms and sale structure showed delivery at that point. Revenue produced no contrary material to displace that position, so the objection to credit was rejected.

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Issues: Whether Cenvat credit of service tax paid on GTA service was admissible where the goods were supplied on FOR destination terms and the property in the goods remained with the manufacturer until delivery at the buyer's premises.

Analysis: The claim for credit was examined in the light of the departmental circular governing availment of Cenvat credit on GTA service in FOR destination transactions. The tender conditions and the sale arrangement showed that the price was inclusive of delivery up to the buyer's place and that ownership of the goods was retained by the manufacturer until such delivery. On that basis, the place of removal was treated as the buyer's premises, and no contrary material was produced by Revenue to dislodge that position.

Conclusion: Cenvat credit was admissible, and the Revenue's objection was rejected.

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