Order date – 20 September 2022

Facts –

• The Appellant, Schaeffler India Limited, submitted that the issue involved is of admissibility of Cenvat credit in respect of outward GTA in case the sale is on FOR basis.
• The Respondent contended that ownership of the goods till the delivery of the goods at the purchaser’s door step is with them, they being seller bearing the risk of loss or damage to the goods during the transit to the destination and freight charges were integral part of the price of the goods.
• It was submitted that an identical case, in the appellant’s own case, the issue has been decided in their favour vide Final Order dated 05.04.2022. There is no dispute that the sale is on FOR basis and freight was borne by the appellant.
• So, the appeal is filed for disposal.

Issues –

• Whether the appellant is entitled for Cenvat credit in respect of outward GTA in case the sale is on FOR basis?

Order –

• The Tribunal observed that it is not disputed that the sale is on FOR basis as in the appellant’s own case, there were identical facts and there the Tribunal held that there are sufficient evidences in form of C.A. Certificate, sample copy of invoices and purchase orders etc. in support of Appellant’s claim and the sale was on FOR/ customer’s door delivery basis and freight was integral part of assessable value.
• Relying on Hon’ble Supreme Court judgement in the case of Ultratech Cement Ltd. vs. CCE, Cestat Ahmedabad, wherein it was held that in case of FOR sale, the Cenvat credit on outward transportation is admissible.; Tribunal in the present case held that the sale being FOR sale and freight is inclusive in the price of the goods and the same was not charged separately to the customers, so, the cenvat credit in respect of outward transportation is admissible.
• Therefore, the issue is no longer res-integra. So, the appellant is entitled for cenvat credit in respect of outward GTA.
• Hence, the appeal is allowed.