Cenvat Credit on outward freight - delivery is on FOR basis - place of removal

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..... Dear Sirs, We are availing service tax credit on outward freight charges based on the terms of Purchase order which were 'FOR destination.'. In one particular customer terms mentioned as 'Insurance covered by us'. Hence department denied cenvat credit of outward freight on that particular customer transactions. Can we contest on this issue?. Besides, we are also charging Freight for some custome .....

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..... rs in the invoice. Is it necessary to include this amount also in assessable value? - Please provide your valuable opinion. - Reply By Rama Krishana - The Reply = Cenvat crdit on outward freight beyond the place of removal is not allowed. Since your terms of agreement is FOR destination basis, it means, your place of removal is destination i.e customer's place. In such situation, department sho .....

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..... uld not deny the benefit of credit. Since this is a question of fact and to seen that how insurance would be a bearing factor on the transaction, as such, and since the department has denied the credit, you should take the matter with the authorities at appropriate level that you are fulfilling the conditions for availing the credit, credit should be allowed. Second part of the query is more rele .....

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..... vant to determine the correctness of your claim of FOR delivery. In case of FOR delivery, in excise, you have to charge duty of excise on the value inclusive of freight. If you are not doing or no paying duty of excise on gross value including freight, you are contradicting your own facts and arguments that you are selling on FOR basis. - Cenvat Credit on outward freight - delivery is on FOR basis .....

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..... - place of removal - Query Started By: - chaganti srinivas Dated:- 12-4-2010 Central Excise - Got 1 Reply - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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