Cenvat credit on outward GTA services allowed where FOR sales placed freight burden on the seller.

Cenvat credit on outward GTA services was held admissible where goods were sold on FOR basis, the seller bore the freight, and the sale price included transportation cost. The Tribunal followed its earlier orders in the assessee's own case and treated outward transportation as part of the sale arrangement, so credit could not be denied merely because delivery occurred beyond the factory gate. The Revenue's contrary reliance was distinguished because the issue had already been decided against it and that view had been upheld.

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Issues: Whether Cenvat credit was admissible on outward GTA services where the sale was on FOR basis and freight was borne by the appellant.

Analysis: The sale invoices and accompanying records showed that the goods were sold on FOR basis, the freight was paid by the appellant, and the sale price included freight. The Tribunal followed its earlier orders in the appellant's own case and the settled view that, in such a transaction, outward transportation forms part of the taxable value arrangement and credit is not to be denied merely because the service relates to delivery beyond the factory gate. The contrary view relied upon by the Revenue was distinguished on the basis that the issue had already been decided against the Revenue in the appellant's own matter and the earlier view had been upheld.

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

Ratio Decidendi: Where goods are sold on FOR basis and freight is borne by the seller, credit on outward transportation services is admissible.

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