Cenvat credit on outward GTA services depends on FOR-based supply terms and transfer of ownership at buyer's premises.

Cenvat credit on outward GTA services was examined in the context of FOR-based supply contracts where ownership was claimed to pass only at the buyer's premises. The order relied on an earlier Tribunal view in substantially identical facts and did not finally decide the merits; instead, it remanded the matter for verification of the contract terms and the point at which ownership transferred. Credit was indicated as admissible if the supplies were found to be on FOR basis with transfer of ownership at delivery to the buyer.

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Issues: Whether Cenvat credit on outward GTA services was admissible where the goods were supplied on FOR basis and ownership was said to pass at the buyer's premises.

Analysis: The appeal turned on whether the facts were identical to an earlier decision of the Tribunal in similar circumstances. The order notes the appellant's assertion that the supply contracts were on FOR basis, the goods remained in the appellant's ownership until delivery at the buyer's premises, and an adjudication in the appellant's own earlier period had already granted relief. Relying on the earlier Tribunal view in substantially identical facts, the matter was not finally decided on the merits in this order but sent back for factual verification of the contract terms and the point at which ownership passed.

Conclusion: The issue was left for reconsideration by the adjudicating authority, and credit was directed to be allowed if the supply was found to be on FOR basis with transfer of ownership at the buyer's premises.

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