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2016 (7) TMI 594 - AT - Central ExciseCenvat credit of service tax availed on freight on outward transportation of goods denied - Held that:- Ownership in goods rests with appellant till delivery to customer. The appellants have also furnished a certificate issued by Chartered Accountant wherein it is certified that freight is included in price of goods and form integral part of assessable value. That appellant has paid appropriate duty of excise payable when calculated by including freight in the assessable value, in case of sales made on FOR basis. These documents sufficiently establish that sale was on FOR basis, and freight was borne by appellant. The Board Circular No. 97/8/2007-ST dated 23.08.2007 lays down three conditions to be satisfied to avail credit of outward transportation on FOR basis. As find that all three conditions are satisfied. The Hon’ble High Court in the case of CCE & Cus Vs Parth Poly Wooven (P) Ltd., [2011 (4) TMI 975 - GUJARAT HIGH COURT ] referring to this Circular held that outward transportation is an input service and is eligible for credit. Following the judgment in the above case and applying the same to the facts presented before me, I hold that denial of credit is not legal or proper. - Decided in favour of assessee.
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