Place of removal determines CENVAT credit eligibility for outward GTA freight to customers' premises.

CENVAT credit on GTA service used for outward transportation up to customers' premises is admissible where the facts show that the buyer's premises are the place of removal. Under section 4 of the Central Excise Act, 1944 and Rule 2(l) of the CENVAT Credit Rules, 2004, outward freight qualifies as input service up to the place of removal. FOR door-delivery terms, delivery-linked payment, and completion of sale only on receipt of goods in proper condition indicate that removal occurs at the customer's premises, bringing such transportation within credit eligibility.

---

---

Issues: Whether CENVAT credit of service tax paid on GTA service used for outward transportation of goods up to the customer's premises was admissible, having regard to the place of removal under the valuation provisions and the definition of input service.

Analysis: The admissibility of credit depended on whether the customer's premises constituted the place of removal on the facts of the sale. Section 4 of the Central Excise Act, 1944 links assessable value to the transaction value at the time and place of removal, and the definition of input service in Rule 2(l) of the CENVAT Credit Rules, 2004 covers outward transportation up to the place of removal. The purchase orders and invoices showed delivery on FOR door delivery terms, and payment was to be made only on receipt of goods in proper condition, indicating that the sale was completed upon delivery at the buyer's premises. In such a situation, the outward transportation was within the scope of input service.

Conclusion: CENVAT credit on GTA service for transportation up to the customers' premises was admissible, the customers' premises being the place of removal on the facts of the case.

---