Cenvat credit on GTA services is available for FOR sales where transportation forms part of the composite supply.

Cenvat credit on service tax paid for GTA services is admissible where goods are sold on FOR basis, because transportation forms part of the composite supply arrangement and has nexus with clearance of goods. The analysis notes that the FOR basis was accepted in the original order and remained undisturbed, and that a Board circular supported credit eligibility in such circumstances. Credit could not be denied solely on the ground that transportation occurred beyond the place of removal, so the assessee's claim was allowed.

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Issues: Whether Cenvat credit of service tax paid on GTA services is admissible when the goods are sold on FOR basis.

Analysis: The sale on FOR basis had been accepted in the order-in-original and was not displaced in the impugned order. The entitlement to credit was considered in light of the settled position that, where supplies are on FOR basis, transportation forms part of the composite transaction and the service is treated as having nexus with clearance of goods. Reliance was also placed on the Board circular clarifying admissibility of credit in such circumstances.

Conclusion: Cenvat credit on GTA services could not be denied merely on the ground that transportation was beyond the place of removal; the claim was allowed in favour of the assessee.

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