Cenvat credit on outward GTA services before 01.04.2008 depends on place-of-removal rules and circular compliance.

Cenvat credit on outward GTA services used before 01.04.2008 was treated as prima facie admissible where the transportation related to movement from the place of removal to the customer's premises, in view of the amended definition extending credit up to the place of removal. Credit remained contingent on compliance with the conditions in Board Circular No. 97/8/2007-ST dated 23.08.2007, and the factual verification of that compliance had not been completed. Fresh examination of the documentary evidence and circular conditions was therefore required, and the matter was remanded to the adjudicating authority.

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Issues: Whether Cenvat credit on outward GTA services availed prior to 01.04.2008 was admissible, and whether the claim required verification of compliance with the conditions prescribed in Board Circular No. 97/8/2007-ST dated 23.08.2007.

Analysis: The relevant definition was amended with effect from 01.04.2008 to extend credit for services used up to the place of removal. On that basis, outward transportation from the place of removal to the customer's premises was prima facie eligible for credit for the prior period. At the same time, the availability of credit was subject to satisfaction of the conditions prescribed in the Board circular, and the factual compliance with those conditions had not been verified by the adjudicating authority.

Conclusion: The matter required fresh verification of the documentary evidence and compliance with the circular conditions, and the impugned order was set aside with remand to the adjudicating authority.

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