Tribunal grants relief by allowing Cenvat credit on transportation costs

The Tribunal allowed the appellant's appeal, granting them relief by setting aside the order disallowing Cenvat credit on outward transportation services. The decision was based on precedents indicating that including transportation costs in the assessable value of goods entitled the appellant to claim such credit. The Tribunal's ruling aligned with earlier cases, leading to the reversal of the department's disallowance of the credit.

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Issues:
- Cenvat credit on outward transportation services

Analysis:
The case involves an appeal against Order-in-Appeal No. 96/2017 dated 7.6.2017 for the disputed period of June 2009 to May 2010. The appellant, engaged in manufacturing asbestos cement sheets and pipes falling under Chapter 68 & 70 of the Central Excise Tariff Act, 1985, claimed Cenvat credit on outward transportation where the cost was included in the FOR. The department disallowed the credit, leading to the appeal.

Upon hearing both parties and examining the records, it was noted that a similar issue had been addressed in the appellant's own case for a subsequent period in M/s ARL Infratech Ltd. Vs. CCE, Jaipur. Referring to the case of Birla Corporation Ltd. Vs. CCE, Jaipur-II and Madras Cements Ltd. Vs. Additional Commr., Bangalore, the Tribunal held that since the goods were supplied on FOR basis to the buyer's place, including the value of transportation in the assessable value of the goods, the appellant was entitled to avail Cenvat credit on outward goods transportation agency services. Consequently, the impugned order was set aside, and the appeal was allowed, following the precedent set in earlier cases.

In conclusion, the Tribunal, by adhering to its previous decision, found no justification to uphold the impugned order disallowing the Cenvat credit on outward transportation services. Therefore, the order was set aside, and the appellant's appeal was allowed, granting them the relief sought.

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