Case Law Details
Shree Rajasthan Syntex Ltd. Vs Commissioner, Central Goods and Service Tax (CESTAT Delhi)
The appellant have admittedly made sales on FoR destination basis. Further, it is the appellant who have borne the incidence of freight and has paid the service tax on the same. I further hold that the place of removal is the premises of the buyer, and accordingly in terms of the amended provision in Rule 2(l), the appellant is entitled to cenvat credit on outward transport under dispute, the same has been incurred upto the place of removal.
FULL TEXT OF THE CESTAT DELHI ORDER
The issue in this appeal is whether the appellant have rightly taken cenvat credit of service tax Rs.1,60,152/- on outward freight during the period 01.04.2008 to March, 2009.
2. The demand as per the show cause notice also comprised an amount of Rs. 2,46,425/- relating to the period January, 2007 to 31.03.2008. The ld. Commissioner (Appeals) held that service tax paid on transportation of finished goods from the factory to the premises of the customer could be taken as cenvat credit and accordingly allowed this amount.
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