Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 471 - CESTAT NEW DELHIEligibility for Cenvat credit - service tax paid on godown rental and on outward freight for transportation of the finished goods upto the customer's premises - Held that:- The department accepts that the appellant has paid central excise duty on the FOR destination price i.e. the factory gate price plus freight charges. According to the department the sales are not on FOR destination basis as in the invoices, there is no reference to the insurance charges. Thus just because the appellant did not insure the goods during transit, it cannot be inferred that the risk of loss of goods, or damage to the goods during transit was not of the appellant, when the invoices mentions that the sales are on FOR destination basis and duty had been paid on the price which includes the freight charges. That it is the customer's premises which has to be treated as the place of removal and the appellant would be eligible for Cenvat credit of the service tax paid on outward freight and as such this Cenvat credit has been wrongly denied. Cenvat credit in respect of godown rental - Since this service had been availed prior to removal of the goods in as much as the place of removal is the customer s premises, the appellant would be eligible for Cenvat credit for this service, more so, when this service has also been availed for storage of the raw material - the impugned order of denial of CENVAT credit is not correct & is set aside - in favour of assessee.
|