Manufacturer granted Cenvat credit for GTA services in transportation of cement sales.

The Tribunal allowed the appeal of a cement manufacturer, permitting Cenvat credit on service tax paid for GTA services used for outward transportation of cement. The Tribunal held that the manufacturer's sales were on FOR destination basis, entitling them to the credit. By including transportation costs in the assessable value of goods at the buyer's place, the manufacturer was deemed eligible for the credit, contrary to the Department's argument. The impugned order disallowing the credit was set aside, granting the appellant relief.

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Issues involved:
1. Eligibility for Cenvat credit on service tax paid for GTA services availed for outward transportation of cement.
2. Interpretation of place of removal for determining eligibility for Cenvat credit.

Analysis:
1. The appellant, a cement manufacturer, claimed Cenvat credit on service tax paid for GTA services used for outward transportation of cement. The dispute arose regarding whether the appellant's sales were on FOR destination basis, entitling them to the credit. The Department argued that sales were not on FOR basis, making the appellant ineligible for the credit. A show cause notice was issued for recovery of allegedly wrongly availed credit and imposing penalties. The Commissioner held that GTA services were not input services, disallowing the Cenvat credit. The appellant contended compliance with CBC Circular and incurred transportation costs in the assessable value of goods at the buyer's place.

2. The Tribunal considered the decision in Ambuja Cements Ltd. case, where Cenvat credit on outward transportation agency services was allowed. Referring to the Madras Cements Ltd. case, the Tribunal emphasized that completion of sale at the buyer's destination, without additional charges for delivery, entitles the appellant to Cenvat credit. The Tribunal rejected the Department's argument based on the Sale of Goods Act, stating that the intention of parties for sale completion at the buyer's address is crucial. The Tribunal held that the appellant's sales were on FOR basis, including transportation value in the assessable value of goods, making them eligible for Cenvat credit on outward transportation services. The impugned order was set aside, allowing the appeal with consequential relief.

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