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2024 (11) TMI 719 - AT - Central ExciseCENVAT in respect of service tax paid on outward transportation under reverse charge mechanism in the admitted fact that the sale of excisable goods is on FOR basis - HELD THAT - It is admitted fact even by the adjudicating authority in the impugned order that the sale of excisable goods is on FOR basis and in respect of supply of such excisable goods the appellant have availed the service of transportation on which the appellant have paid the service tax which has been availed as Cenvat Credit. On the identical facts this Tribunal has decided the matter in favour of the assessee in the case of M/S ULTRA TECH CEMENT LTD. VERSUS CCE ST ROHTAK 2014 (10) TMI 679 - CESTAT NEW DELHI . In the said judgment in the case of sale of goods on FOR basis, whenthe freight is integral part of the assessable value on which excise duty was paid it was held that in this condition the assessee is eligible for the Cenvat Credit on outward transportation. Recently on the identical issue and under the same set of facts the Hon ble Kerala High Court in the case of TRANSFORMERS AND ELECTRICALS KERALA LTD. VERSUS THE COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE KOCHI THE CUSTOMS EXCISE AND SERVICE TAX APPELLATE TRIBUNAL BANGALORE. 2024 (10) TMI 623 - KERALA HIGH COURT also taken the same view and held that In the instant cases however we find that it is the admitted case that the appellant did not include the transportation costs in the assessable value of the goods for the purposes of payment of Central Excise duty. Under such circumstances we fail to see how the appellant can claim input tax credit in respect of the transportation services availed by it for the purposes of transporting the goods from the place of removal to the buyer s premises. In our view permitting the appellant to avail input tax credit in such circumstances would militate against the very Scheme of CENVAT credit which is designed to avoid the cascading effect of tax and an ultimate burden on a consumer. We therefore see no reason to interfere with the order of the Tribunal impugned in these appeals. In view of the above judgments of the Hon ble High Court of Gujarat and Kerala High Court the issue is no longer res-integra. Hence applying the above judgments in the present case also the appellant is eligible for Cenvat Credit on outward GTA service. The impugned order is set aside the appeal is allowed with consequential relief.
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