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2016 (1) TMI 764 - AT - Central ExciseCENVAT Credit on GTA services - Disallowance of credit on service tax paid on GTA Services in respect of outward transportation services - Held that:- Undisputedly the transactions are FOR destination and the value of the goods include cost of transportation upto destination plus insurance. The Board has issued a Circular No. 97/6/2007-ST dated 23.8.2007, wherein it is clarified that the GTA service availed for outward transportation of the goods from the factory/depot to the customer's premises would be treated as 'input service' only when the place of removal of the goods is the customer's premises or in other words the sale transaction is on FOR destination basis. Thus as per the clarification, if assessable value of the goods on which duty is paid is the FOR destination price, the credit on the service tax paid on freight upto buyer's door step would be admissible. The Hon'ble High Court in the case of CCE Vs. Parth Poly Wooven (P) Ltd, (2011 (4) TMI 975 - GUJARAT HIGH COURT ) has categorically held that the outward transport service used by the manufacturers for transportation of finished goods from the place of removal upto the premises of the purchaser is covered within the definition of 'input service' provided in Rule 2(1) of the Cenvat Credit Rules, 2004. - Decided in favour of assessee.
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