CENVAT credit on outward GTA freight under FOR destination sales supported waiver of pre-deposit and recovery stay.

CENVAT credit on GTA service used to transport finished goods from the factory to the buyer's premises was treated as prima facie admissible where the sales were on a FOR destination basis, freight was borne by the assessee, and the invoice showed no freight charge to the buyer. On those facts, the Tribunal found a prima facie case in favour of the appellant and accepted that the cited decisions and Board circular supported the claim. The result was waiver of pre-deposit and stay of recovery of duty and penalty.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery of duty and penalty arising from denial of CENVAT credit on GTA service used for outward transportation of finished goods.

Analysis: The demand arose from denial of CENVAT credit on GTA service availed for transporting finished goods from the factory to the buyer's premises. The goods were cleared on a FOR destination basis, the freight was borne by the assessee, and the invoice indicated that no freight was charged to the buyer. On these facts, a prima facie case was found in favour of the appellant. The Tribunal also found the cited decisions and the Board's circular to be prima facie supportive of the appellant's claim.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery.

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