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Credit of service tax paid on GTA services where goods are supplied on FOR basis, CENVAT Credit cannot be denied: CESTAT, Ahemdabad

READ ORDER BELOW

IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
WEST ZONAL BENCH, AHMEDABAD
COURT NO. I

Appeal No. E/11578/2018-SM

Arising out of Order-in-Appeal No. OIA-CCESA-SRT-APPEAL-PS-715-2017-18, Dated: 28.02.2018
Passed by Commissioner (Appeal) of Central Excise and ST, Surat

Date of Hearing: 22.03.2019
Date of Decision: 22.03.2019

M/s SALASAR COPPER

Vs

COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX
DAMAN

Appellant Rep by: Shri Dhaval Shah, Adv.
Respondent Rep by: Shri Amit Mishra, Joint Commissioner AR

CORAM: Raju, Member (T)

CX – This appeal has been filed by assessee against denial of Cenvat credit on GTA services availed during period October 2015 to June 2016 – The observations of O-I-O that goods are sold on FOR basis has not been challenged and has not been upset by impugned order – Assessee pointed that in the case of Sanghi Industries Limited, in the similar circumstances, the benefit of Cenvat credit on GTA services was allowed – Similarly, in the case of Ultratech Cement Limited where there was no dispute for the sale being FOR basis, credit has been allowed – Also in terms of Board Circular 1065/4/2018-CX, there is no dispute on benefit of Cenvat credit if the sale is on FOR basis – In view of clear pronouncement of law as well as CBEC Circular, credit of service tax paid on GTA services where goods are supplied on FOR basis, Cenvat credit cannot be denied for the reasons that the said service has been availed for transportation of goods beyond the place of removal: CESTAT

Appeal allowed

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