Cenvat Credit on Transport Services for Finished Goods Recoverable; Outward Freight Charges Credit Allowed.

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Full Text of the Document

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....Cenvat credit for Goods Transport Agency (GTA) service used for transportation of finished goods is recoverable, treating it as rightly availed credit. Transportation charges are to be added to the value only until the transfer of ownership of goods, as expenditure incurred after ownership transfer is on buyer's account and cannot be included in valuation of goods manufactured by buyer. Sale is effected when ownership transfers from seller to buyer, determined based on provisions of Sale of Goods Act, 1930 and facts of each case. As per Section 4 of Central Excise Act, 1944, for valuation of excisable goods for ad valorem duty, transaction value shall be considered where goods are sold for delivery at time and place of removal, assessee and.........