CENVAT credit on outward transportation may depend on FOR delivery terms and proof that risk stayed with the seller.

CENVAT credit on outward transportation for delivery of finished goods may be admissible where the goods are sold on FOR basis and ownership and risk remain with the assessee until delivery at the buyer's premises. The record here was found insufficiently examined to confirm whether the supporting documents established that factual foundation, so the lower authorities had not properly tested the applicability of the cited decisions and Board circular. The matter was therefore remitted for fresh scrutiny of the documents and a reconsidered decision on eligibility in light of the settled legal position.

---

---

Issues: Whether CENVAT credit was admissible on outward transportation services used for delivery of finished goods to the buyer's premises on FOR basis, and whether the documents produced established the factual foundation for applying the settled law and the Board circular.

Analysis: The appeal turned on the nature of the transportation arrangement and the supporting documents showing delivery on FOR basis. The cited decisions and the Board circular indicated that credit may be admissible where ownership and risk remain with the assessee up to delivery at the buyer's premises, but the record had not been examined adequately by the lower authorities. In these circumstances, the factual materials required fresh scrutiny by the adjudicating authority to determine whether the cited authorities applied to the facts of the case.

Conclusion: The matter was remanded to the adjudicating authority for reconsideration of the documents and a fresh decision on applicability of the relied-upon decisions.

---