Gnat Foundry Pvt Ltd. Vs Commissioner of Central Excise & Central GST (CESTAT Mumbai)
In Gnat Foundry Pvt Ltd. Vs Commissioner of Central Excise & Central GST, the CESTAT Mumbai adjudicated an appeal challenging the order dated 16.11.2020 passed by the Commissioner (Appeals), Pune, which had upheld the Order-in-Original dated 30.01.2019 denying CENVAT credit on Goods Transport Agency (GTA) services used for outward transportation of goods to customers’ premises.
The central issue before the Tribunal was whether the appellant was entitled to avail CENVAT cred-it of service tax paid on GTA services used for transportation of finished goods up to the custom-ers’ premises. The lower authorities had denied the credit primarily relying on the decision of the Supreme Court in CCE vs. Ultratech Cement Ltd. and certain circulars.
Upon consideration, the Tribunal noted that the issue was no longer res integra and had been settled by the Larger Bench decision in Ramco Cements Ltd., which examined the statutory provisions, judicial precedents, and relevant circulars. The Larger Bench held that the admissibility of CENVAT credit on GTA services depends on determining the “place of removal” based on the facts of each case, particularly in cases involving FOR (Free on Road) contracts.
