Cenvat Credit on Outward Transportation of Goods

[abhishek ghai]

Dear Experts,

Pls. Resolve the Issue that whether cenvat credit of Service tax paid under RCM on GTA Services availed by a manufacturer on Outward transportation of finished goods from the factory to buyers premises during the F.Y. 2014-15 shall be admissible.

Even though the Place of Removal has been clearly defined vide notification No.21/2014, but whether the CBEC Circular no. 988/12/2014-CX hold relevance as it states that- 'the Place where sale has taken place or when the property in goods passes from the seller to the Buyer is the relevant consideration to determine the Place of Removal ', further it lays stress on the Sales of Goods Act, 1930 wherein the factors specified in the given circulars are satisfied.

Kindly let me know the relevance of circular for the F.Y. 2014-15 and onwards and other judicial pronouncements.

Regards,

CA Abhishek Ghai

Rajiv Mehrotra & Associates

Kanpur

AI Summary

Debate on Cenvat Credit for Service Tax on Outward Transport: Impact of CBEC Circulars and Supreme Court Rulings A discussion on whether Cenvat credit for service tax paid under reverse charge mechanism on Goods Transport Agency services for outward transportation of goods is admissible for the fiscal year 2014-15. The query references a CBEC circular and the Sales of Goods Act, 1930, questioning their relevance. A response highlights a shift in the Board's stance on determining the 'place of removal,' emphasizing that recent circulars and Supreme Court judgments support this change, suggesting the Board's clarification is retrospective. The response concludes that input service credit should be admissible based on specific case facts.