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2019 (9) TMI 466 - AT - Central ExciseCENVAT Credit - input services - freight charges for outward transportation of goods - HELD THAT:- It is clear that the sale is on F.O.R. basis. The documents show that the sale is on F.O.B. destination/free house delivery. The appellant was under an obligation to deliver the goods at the buyer’s premises. They have also included the freight charges in the assessable value while discharging the excise duty.
This issue, as to how to determine the place of removal, when the sale is on F.O.R. basis, as has been dealt in the case of COMMISSIONER, CUSTOMS AND CENTRAL EXCISE, AURANGABAD VERSUS M/S ROOFIT INDUSTRIES LTD. [2015 (4) TMI 857 - SUPREME COURT]. The department has also clarified vide its Circular dated 08.06.2018 that when the sale is on F.O.R. basis, the freight charges ought to be included in the assessable value and the place of removal would be buyer’s premises. The documents in the present case as well as the facts reveal that the place of removal is the buyer’s premises - the disallowance of credit is unjustified. Appeal allowed - decided in favor of appellant.
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