Cenvat credit on outward freight allowed where FOR sales and freight-inclusive assessable value showed delivery responsibility lay with the seller.

Cenvat credit on outward GTA service was admissible where excisable goods were sold on FOR basis, freight was included in the assessable value, and excise duty was paid on that value. Because the seller bore transportation responsibility and risk until delivery at the buyer's premises, outward freight up to the place of delivery formed part of the input service chain for the relevant period. The denial of credit was therefore unsustainable, and the assessee was entitled to credit on outward freight on the facts of the case.

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Issues: Whether Cenvat credit was admissible on outward GTA service used for transport of excisable goods to the buyer's premises when freight formed part of the assessable value and duty was discharged on that value.

Analysis: The freight charges were not separately recovered and were included in the assessable value on which excise duty was paid. The goods were supplied on FOR basis and the seller bore the transportation risk and responsibility until delivery at the customer's doorstep. On these facts, the outward transportation was treated as part of the transaction upto the point of sale, making the service an eligible input service for the relevant period. The matter was considered covered by the settled legal position on determination of place of removal, point of sale, and ownership transfer in sale transactions.

Conclusion: Cenvat credit on outward GTA service was held admissible and the challenge to denial of credit failed.

Final Conclusion: The impugned orders were set aside and the appeals were allowed, granting the assessee the benefit of credit on outward freight in the facts of the case.

Ratio Decidendi: Where goods are sold on FOR basis and the freight is included in the assessable value with the seller retaining responsibility till delivery, outward transportation upto the buyer's premises forms part of the input service chain and Cenvat credit is admissible.

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