2019 (5) TMI 1405 - AT - Central Excise

Appellant entitled to cenvat credit for outward GTA services sold on FOR basis with freight included. Precedents referenced.

M/s Panoli Intermediates India Pvt. Ltd. Versus C.C.E. & S.T. Vadodara-I

The Tribunal held that the appellant was entitled to cenvat credit for outward GTA services when goods were sold on a FOR basis with freight included in ... CENVAT credit - input services - outward GTA service - condition of sale on FOR basis - HELD THAT:- From the purchase order there is no dispute that the supply of excisable goods is on FOR basis, the freight is already included in the assessable value on which excise duty was discharged. With this fact the appellant become entitled for the cenvat credit on the outward GTA service - Credit allowed - appeal allowed - decided in favor of appellant. Issues involved: Entitlement to cenvat credit in respect of outward GTA service.Analysis:1. Issue of Entitlement to Cenvat Credit: The primary issue in this case revolved around whether the appellant was entitled to cenvat credit in respect of outward GTA service. The appellant argued that the freight was inclusive in the value of the goods on which excise duty was paid, and the condition of sale was on FOR basis. The Tribunal referred to its previous judgment in the case of M/s Salasar Copper and noted that when goods are sold on FOR basis with freight already included in the assessable value, the appellant becomes entitled to cenvat credit on the outward GTA service. The Tribunal cited precedents such as Sanghi Industries Limited vs. CCE and Ultratech Cement Limited vs. CCE to support this position. Additionally, the Tribunal highlighted Board Circular No. 1065/4/2018-CX, which also supported the benefit of Cenvat credit in such circumstances.2. Judgment and Decision: After hearing arguments from both sides and examining the records, the Tribunal concluded that the appellant was indeed entitled to the cenvat credit. The Tribunal emphasized that the issue was no longer res-integra, given the precedents and circular cited. Consequently, the impugned order was set aside, and the appeal was allowed. The Tribunal's decision was based on the clear understanding that when goods are sold on FOR basis with freight already included in the assessable value, the appellant is entitled to cenvat credit on outward GTA services.In conclusion, the Tribunal's judgment in this case clarified the entitlement to cenvat credit in the context of outward GTA services when goods are sold on FOR basis with freight included in the assessable value. The decision was based on established legal principles, precedents, and relevant circulars, ultimately ruling in favor of the appellant and setting aside the impugned order.