TMI Blog2016 (6) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... ue that para 12 would show that ownership of goods get transferred to customer immediately on making payment is without basis. Again, the last part of para 11 is only an option given to customer for transporting the goods in their vehicles. But not even a single instance of exercising this option is proved by Revenue. Thus as per records, the appellants have succeeded in establishing that the sale is on FOR basis and place of removal is the customer’s premises. On such score, the Board Circular is binding on the department and the denial of credit is unjustified. - Credit allowed - Decided in favor of assessee. - E/27135 TO 27137/2013 - A/30345-30347/2016 - Dated:- 19-4-2016 - Ms. Sulekha Beevi, Member(Judicial) Shri Nitesh Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the agreement between the appellant and distributor. They submitted that as per para 11 of the agreement read with para 15, it is clear that the place of removal is the customers premises. The buyer places order on FOR(Free on Road) basis which is clear from the invoices. In the CBEC circular No.97/8/2007-ST dated 23-08-2007, the Board has clarified that there may be situations where the manufacturer /consignor may claim that the sale has taken place at the destination point based on terms and conditions of the sale contract/agreement. The circular lays down three conditions to be fulfilled and that in such situations credit of the service tax paid on transportation upto such place of sale would be admissible. That para 11 and 15 of the ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f beverages is agreed to be on payment by cash/demand draft. That this necessarily means payment has to be made before sale and delivery and that therefore, the ownership has passed to the buyer at the time of payment. That the place of removal would then be the factory gate and not the customers premises. He supported the findings in the impugned order and pleaded that the appeal may be dismissed. 5. I have heard both sides. The issue is whether appellant is eligible for credit of service tax paid on outward transportation of finished goods to distributor/dealers premises. After hearing the submissions, I consider that the arguments revolve around the interpretation of terms and conditions stipulated in para 11, para 12 and para 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age of the Beverages, if any, occurring during transportation and/or till the time that sale and delivery on part of the Company is held to be complete within the meaning of clause 11 above 7. At this juncture, it would also be worthwhile to mention the three conditions to be satisfied for treating a transaction on FOR basis as clarified in the Board circular No.97/8/2007-ST, dated 23-08-2007. They are : i) the ownership of goods and the property in the goods remained with the seller of the goods till the delivery of the goods in acceptable condition to the purchaser at his door steps. ii) the seller bore the risk of loss of or damage to the goods during transit to the destination and iii) the freight charges were an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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