Cenvat credit on service tax paid

[CA.ANCHAL RASTOGI]

our co ia a manf. co and sell its material on f.o.r. basis. can we take cenvat credit of s.t. paid on outward frieght and use for payment of e.d.. is there any case law of sc or hc according to which s.t. paid on outward frieght is not eligible for credit because it is not input sevice, even goods sold on f.o.r. basis. if, yes, pl let me know.

AI Summary

CENVAT Credit Eligibility on Outward Freight: Ownership and Risk Transfer at Destination Key Factors for Claims A manufacturing company inquires about claiming CENVAT credit on service tax paid for outward freight when selling goods on an F.O.R. basis. Responses reference the Gujarat Ambuja Cements case, which disallowed such credit, but opinions suggest the decision was flawed. It is argued that credit eligibility depends on the sale's nature; credit is possible if the sale occurs at the destination, with the seller retaining ownership and risk until delivery. The CBEC Master Circular clarifies that credit depends on the place of removal, allowing claims if the sale and property transfer occur at the destination.