TMI Blog2016 (1) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Decid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on safe delivery of the products at the customer's door step. That ownership in goods remain with appellants till delivery and they are also responsible for the security/insurance of the goods till the goods are delivered to the customer at the door. Therefore, that central excise duty is paid on the value of goods at the door step of the customer, and being so, the outward freight upto destination is 'input service' for which they are eligible for credit. To fortify his arguments, the learned counsel has noted the judgments in Commissioner of Excise Customs Vs. Parth Poly Wooven (P) Ltd. 2012 (25) STR 4 Guj. rendered by the High Court of Gujarat. It was also argued by the Counsel that the Commissioner (Appeal) in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s insurance. The Board has issued aCircular 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. As per this Circular for treating a transaction as on FOR basis, the under mentioned conditions are to be satisfied. (i) the ownership of goods and the property in the goods remain with the seller of the goods till the delivery of the goods in good condition to the door step of the purchaser (ii) the seller bears the risk of loss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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