FOR destination sales and place of removal determine Cenvat credit eligibility for GTA transport up to buyer's premises.

Where goods are sold on FOR destination terms and ownership and risk remain with the manufacturer until delivery at the buyer's premises, that premises is treated as the place of removal. GTA services used to transport the goods up to that point qualify as input services for Cenvat credit, because credit is available on transportation up to the place of removal. On that basis, denial of Cenvat credit was unsustainable and the impugned order was set aside in favour of the assessee.

---

---

Issues: Whether cenvat credit of service tax paid on GTA services used for transportation of goods up to the buyer's premises was admissible when the sale was on FOR destination basis and ownership in the goods remained with the manufacturer till delivery.

Analysis: The contract was on FOR destination terms, the goods remained in the manufacturer's ownership and risk until delivery at the buyer's premises, and the sale was completed only on such delivery. On that factual footing, the buyer's premises constituted the place of removal. Since cenvat credit on transportation service is admissible up to the place of removal, the transportation service used for moving the goods to the buyer's premises qualified as input service for credit purposes.

Conclusion: The cenvat credit was admissible and the denial of credit was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Where goods are sold on FOR destination terms and ownership and risk remain with the manufacturer until delivery at the buyer's premises, the buyer's premises is the place of removal and GTA services used for transportation up to that point are eligible for cenvat credit.

---