2026-VIL-698-CESTAT-MUM-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Cenvat credit on GTA services for outward transportation of goods up to customer's premises - Whether the appellant is eligible to avail CENVAT Credit of Service Tax paid on GTA service used for outward transportation of goods up to the customer's premises – HELD - The Larger Bench of the Tribunal in the matter of M/s Ramco Cements Ltd. Vs. CCE, Puducherry has held that in a case where clearance of goods are against FOR contract basis, the authority needs to ascertain the 'place of removal' by applying the judgements of the Supreme Court in Emco and Roofit Industries - The decision of Karnataka High Court in Bharat Fritz Werner, and the Circular dated 08.06.2018 of the Board to determine the admissibility of Cenvat Credit on the GTA service upto the place of removal. – The Section 4 of the CEA, 1944 makes it clear that where excise duty is chargeable on an ad valorem basis, the assessable value shall be the transaction value, provided the goods are sold for delivery at the time and place of removal, the buyer and assessee are not related, and price is the sole consideration. Thus, valuation is intrinsically linked to the point of delivery at the ‘place of removal’ - In the instant case, the purchase orders issued by different customers stipulate the delivery term as "FDD (FOR Door Delivery)/BEML KGF" indicating that the sale is completed only upon delivery and acceptance of goods in proper condition at the buyer's premises. Therefore, the customer's premises constituted the place of removal and the GTA service availed for outward transportation of finished goods up to the customers premises qualify as input service under Rule 2(l). Accordingly, the appellant has rightly availed CENVAT Credit of Service Tax on GTA service - The impugned order is set aside by allowing the appeal
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