CENVAT credit on outward transportation of goods

[Kaustubh Karandikar]

As per the judgment of Supreme Court in the case of Ultratech Cement =2018 (2) TMI 117 - SUPREME COURT OF INDIA, CENVAT Credit under Excise regime on goods transport agency service availed for transport of goods from place of removal to buyer’s premises was not admissible to the assessee. In view of this, the EA-2000 audit party had disallowed the credit to the assessee for outward transportation where the terms of the contract are ‘FOR Destination’. Any defence is possible?

[KASTURI SETHI]

Dear Sir,

Will you pl. let me know the period of demand involved in this case ?

AI Summary

CENVAT Credit Disallowed for Outward Transportation to Buyer's Premises per Ultratech Cement Judgment; Inquiry on Demand Period A query was raised regarding the admissibility of CENVAT credit on outward transportation of goods, referencing a Supreme Court judgment in the Ultratech Cement case. The court ruled that CENVAT credit under the Excise regime for goods transport agency services used to transport goods from the place of removal to the buyer's premises was not permissible. Consequently, an audit party disallowed such credit for outward transportation under 'FOR Destination' contract terms. A respondent inquired about the period of demand involved in the case, seeking further details for potential defense.