Cenvat credit on outward GTA service is available when FOR sale freight is included in the duty-paid assessable value.

Cenvat credit is admissible on outward GTA service where the sale is on FOR basis and freight forms part of the assessable value on which excise duty is paid. The purchase order showed FOR supply, and the freight was included in the value of clearance. That position was treated as covered by earlier Tribunal precedent and the relevant board circular recognising credit entitlement in such circumstances. The operative effect is that, for FOR sales with freight embedded in the duty-paid assessable value, outward transportation may qualify for Cenvat credit.

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Issues: Whether Cenvat credit is admissible on outward GTA service where the goods are sold on FOR basis and freight is included in the assessable value on which excise duty has been paid.

Analysis: The purchase order showed that the supply was on FOR basis and the freight formed part of the value of the goods on which excise duty was discharged. In these circumstances, the issue stood covered by the Tribunal's earlier decision and the relevant board circular, which recognised entitlement to credit where sale is on FOR basis and freight is included in the value of clearance.

Conclusion: The appellant was entitled to Cenvat credit on outward GTA service.

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