Cenvat Credit on Outward Transportation of Goods

[Asked by Guest]

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

Place of removal under the Sale of Goods Act determines admissibility of cenvat credit on outward transportation under reverse charge.
Admissibility of cenvat credit on service tax under reverse charge for outward transportation hinges on place of removal. The Board's circulars reframe place of removal under the Sale of Goods Act-focusing on where property in goods passes rather than freight, insurance or risk tests-and are binding. The circulars are treated as retrospective clarifications and, together with supporting judicial precedents, require case specific factual assessment to determine whether cenvat credit can be claimed.