Order Date: 24 June 2022

Facts:

• The Appellant Prestress Wire Industries submits that there is no dispute that the delivery of the goods is up to the customer’s premises and sale is on FOR basis. In this regard he invited attention to various documents such as invoices of their customers wherein he pointed out that the sale is on FOR basis and freight was not separately charged to the customers whereas the same was borne by the appellant.

Issue:

• Whether the appellant is entitled for cenvat credit on GTA service when the sale of goods by using the said transportation service is on FOR basis?

Order:

• The Tribunal observed that the documents submitted by the appellant which were also placed before the lower authority such as invoices, it clearly established that the freight was not separately charged from the customers the same was borne by the appellant therefore, it is the part and parcel of the invoice value and the excise duty was charged on the said value. As per this undisputed fact, it is held that the appellant is entitled for the Cenvat Credit on GTA Services.
• The same issue on the identical fact has been decided by this Tribunal in the case of M/s Ultratech Cement Ltd. Versus C.C.E. Kutch (Gandhidham) and M/s Sanghi Industries Ltd. Versus C.C.E. Kutch (Gandhidham) where it was held that as the ownership of the goods remained with the Appellants till the goods reached to the customer’s doorstep and the freight charges as well as damage (insurance) to the goods till destination were borne by the Appellant, they are eligible for the credit of service tax paid by them on outward freight.
• Therefore, the impugned order was set aside and appeals was allowed with consequential relief.