CESTAT Delhi allows CENVAT Credit on GTA services availed for Transportation of Cement from Factory Gate to Customers Premises [Read Order]

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In a recent decision, the CESTAT, delhi bench ruled that CENVAT Credit on Service Tax paid towards GTA services availed for transportation of cement from factory gate to their customers premises.

The appellant-assessee, in the instant case, is engaged in the manufacture of cement. They are  availing cenvat credit of duty paid on inputs and input services.The sole issue raised by the appellant before the Tribunal is that whether they are eligible to credit of service tax paid on GTA services availed for transportation of cement from factory gate to their customers premises.

The lower authorities denied the cenvat credit to the appellant by observing that no credit on such GTA service is available to the appellants since the place of removal is factory gate.

The Tribunal noted that the cement is supplied at the premises of the customers and the freight is arranged and paid by the appellants.

It was further pointed out that the Tribunal, in the own case of the assessee has allowed the same by holding that when sales by the assessee were on FOR  they  legitimately availed cenvat credit on the  service tax paid on the freight charges, borne for its FOR sales. Accordingly, the impugned order was quashed.

Read the full text of the order below.

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