Cenvat Credit can be granted on GTA outward when Freight Charges include in assessable value for Excise Duty: CESTAT [Read Order]

The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Cenvat Credit can be granted on GTA outward when Freight Charges include in assessable value for excise duty.

Gujarat Metal Cast Industries Ltd, the appellant filed appeal to determine whether the appellant is entitled for Cenvat Credit on outward GTA.

Shri. Dhaval Shah, Counsel appeared on behalf of the appellant submitted that the GTA Services was availed for transport of goods which was sold on FOR basis.  The freight is included in the value of the goods. The same was not charged to the customers of the goods. In such case the appellant is entitled for Cenvat Credit on outward GTA in terms of judgment of Ultratech Cement Ltd - 2019 (2) TMI 1487 – CESTAT-Ahmd and Sanghi Industries Ltd -2019 (2) TMI 1488 (Tri. – Ahmd). 

Shri Prakash Kumar Singh, Superintendent (AR) appeared on behalf of the Revenue relied on the finding of the impugned order.

It was settled law that “if the sale of goods is on FOR, freight is included in assessable value on which excise duty was paid and the freight was not separately charged to the customer of the goods, the assessee is entitled for the Cenvat Credit.”

A Coram of Single-member Mr Ramesh Nair (Judicial) observed that the appellant have not produced the documents before the lower authority to establish the fact ,therefore the issue is remanded for verification.

The Tribunal set aside the impugned orders and  allowed the appeal by way of remand to the adjudicating authority for passing a fresh order preferably within a period two months from the date of this order.

To Read the full text of the Order CLICK HERE

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