Cenvat credit on outward GTA service allowed where goods were sold FOR basis and freight formed part of assessable value.

Cenvat credit on outward GTA service was allowable where excisable goods were sold on FOR basis and freight formed part of the assessable value on which excise duty had already been paid. The Tribunal treated the claim as covered by earlier precedent and Board Circular No. 1065/4/2018-CX, which recognises credit entitlement in FOR-supply arrangements. On that footing, the appellant satisfied the conditions for availing credit, and the assessee's claim was accepted.

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Issues: Whether Cenvat credit was admissible on outward GTA service where the sale of excisable goods was on FOR basis and freight was included in the assessable value on which excise duty had been discharged.

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 duty had already been paid. In these circumstances, the Tribunal treated the issue as covered by earlier precedent and by Board Circular No. 1065/4/2018-CX dated 08.06.2018, which recognised entitlement to credit where sale is on FOR basis. The Tribunal therefore held that the appellant satisfied the conditions for availing credit on outward GTA service.

Conclusion: Cenvat credit on outward GTA service was admissible and the issue was decided in favour of the assessee.

Ratio Decidendi: Where excisable goods are sold on FOR basis and freight is included in the assessable value on which duty is paid, credit on outward GTA service is allowable.

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