Cenvat credit on outward freight turned on the place of removal test and Board Circular compliance before remand.

Cenvat credit on service tax paid for outward transportation under GTA service depended on whether the freight related to transport up to the place of removal and whether the Board Circular dated 23-8-2007 on that expression was satisfied. The record showed that the lower authorities had not examined those parameters or recorded findings on that aspect, even though the relevant period preceded the circular. The issue was therefore not finally determined on merits, and the matter was remanded for fresh examination in accordance with the circular after granting an opportunity of hearing.

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Issues: Whether Cenvat credit on service tax paid for outward transportation under Goods Transport Agency service was allowable, and whether the claim required examination in the light of the Board Circular on the meaning of "place of removal".

Analysis: The entitlement to credit depended on whether the outward freight related to transportation up to the place of removal, and whether the parameters stated in the Board Circular dated 23-8-2007 were satisfied. The record showed that the lower authorities had not examined those parameters or recorded findings on that aspect, even though the period involved was prior to the circular.

Conclusion: The issue was not finally decided on merits and the matter was remanded to the original adjudicating authority for fresh examination in accordance with the circular and after granting an opportunity of hearing.

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