FOR destination sales and place of removal determine Cenvat credit eligibility on outward transportation charges.

Cenvat credit on service tax paid for outward transportation to the buyer's premises depended on whether the sale was on FOR destination terms and whether the buyer's premises could be treated as the place of removal on supporting documents. The appellate finding was that the claimed FOR sale was not backed by documentary evidence, and the legal position had to be re-examined in light of Supreme Court rulings and the Board's circular. The matter was remanded for fresh adjudication on eligibility of credit.

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Issues: Whether Cenvat credit on service tax paid for outward transportation of goods up to the buyer's premises was admissible, and whether the matter required remand for fresh adjudication in light of the applicable legal position and documentary evidence regarding FOR sale.

Analysis: The claim depended on whether the sale was on FOR destination terms and whether the buyer's premises could be treated as the place of removal on the basis of supporting documents. The appellate authority had recorded a finding that the asserted FOR sale was not supported by documentary evidence. The Tribunal followed its earlier remand order in similar matters and considered it appropriate to re-examine the dispute afresh in the light of the Supreme Court decisions, the Board's circular, and the factual determination required on the nature of the contract.

Conclusion: The matter was remanded to the adjudicating authority to decide afresh after examining the documentary evidence and the applicable legal position on eligibility of credit for outward transportation.

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