Appeal allowed for cenvat credit on outward transportation to buyer's premises

The Tribunal allowed the appeal, holding that the appellant is entitled to cenvat credit on outward transportation for removal of finished goods as the place of removal is the buyer's premises, where the appellant bore freight and transit risk until delivery. The appellant's right of disposal during transit and transfer of property at the buyer's doorstep supported their claim. The impugned order was set aside, granting the appellant consequential benefits as per the law.

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Issues:
Whether the appellant has rightly taken cenvat credit on outward transportation for removal of finished goods.

Analysis:
The appellant filed an appeal before the Commissioner (Appeals) claiming that cenvat credit on outward GTA service for clearance of finished goods on FoR basis is admissible as per Board Circular No. 1065/4/2018-CX dated 08.06.2018. The appellant argued that the place of removal is the buyer premises as they sold goods on FoR destination basis, retaining ownership and right of disposal until delivery at the buyer's doorstep. The Commissioner (Appeals) held that the place of removal is the factory gate of the appellant, dismissing the appeal. The appellant contended that they satisfied conditions under Section 4 of the Central Excise Act, demonstrating through a sample invoice that transit risk lies with the seller until delivery at the buyer's premises.

The Tribunal considered the appellant's claim that they cleared finished goods on FoR destination basis, bearing freight and transit risk until delivery at the buyer premises. The appellant had the right of disposal during transit, transferring property of goods to the buyer at the buyer's doorstep. The Tribunal held that the place of removal is the buyer's premises, entitling the appellant to cenvat credit on outward transport. The appeal was allowed, setting aside the impugned order and granting the appellant consequential benefits in accordance with the law.

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