CENVAT Credit Allowed on GTA Services for Transporting Goods to Buyer’s Premises

Ambuja Cements Limited Vs Commissioner (Appeals), Central Goods & Service Tax, Central Excise (CESTAT Delhi)

CESTAT Delhi overturned a decision by the Commissioner (Appeals), granting Ambuja Cements Limited the right to claim CENVAT credit for service tax paid on Goods Transport Agency (GTA) services used to deliver cement to buyers’ premises under FOR (Free on Road) terms. The earlier orders had denied the credit, arguing that the “place of removal” remained the factory, making transportation costs ineligible for credit.

The CESTAT relied on the Larger

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