Appellant granted Cenvat credit for Goods Transport Agency services up to buyer's premises

The Tribunal allowed the appellant's claim for Cenvat credit on Goods Transport Agency services for outward transportation of goods up to the buyer's premises. Relying on the Supreme Court's decision and previous Tribunal rulings, it held that the appellant was entitled to the credit as the sale occurred at the buyer's premises, not at the factory gate. The Tribunal found the denial of credit unjustified, setting aside the impugned order and allowing the appeal with any necessary reliefs.

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Issues:
1. Eligibility of Cenvat credit on Goods Transport Agency Services for outward transportation of goods up to the buyer's premises.

Analysis:
The case involved the question of whether the appellant was entitled to claim Cenvat credit on Goods Transport Agency (GTA) services utilized for outward transportation of goods up to the buyer's premises. The department contended that the credit was not eligible as the place of removal was considered to be the factory gate. The appellant argued that the sale was on a Free on Road (F.O.R.) basis, with the freight charges included in the assessable value for excise duty discharge, indicating that the sale took place at the buyer's premises. Reference was made to the decision of the Hon'ble Supreme Court in the case of Commissioner of Customs & Central Excise vs. Roofit Industries Ltd., which held that in F.O.R. sales, the place of removal is the buyer's premises.

The appellant further cited a Board circular clarifying the eligibility of credit in such cases. The Tribunal's previous decisions in similar cases were also referenced to support the appellant's argument. On the other hand, the Revenue argued that the place of removal was the factory gate based on findings of the authorities below and referred to a decision in a different case supporting this view. However, the Tribunal disagreed with the Revenue's interpretation, emphasizing that the sale in the present case took place at the buyer's premises, as evidenced by the terms of the purchase order and the inclusion of freight charges in the assessable value.

The Tribunal relied on the Supreme Court's decision and previous Tribunal decisions to conclude that the denial of credit was unjustified. It held that the appellant was eligible for the credit of service tax paid on outward transportation of goods up to the buyer's premises. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential reliefs.

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