Case Law Details
Gujarat Metal Cast Industries Ltd. Vs C.C.E. & S.T. (CESTAT Ahmedabad)
CESTAT held 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. However it is admitted fact that the appellant have not produced the documents before the lower authority to establish the fact in this regard. Therefore, matter needs to be remanded for verification.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved is that whether the appellant is entitled for Cenvat Credit on outward GTA.
2. Shri. Dhaval Shah, Learned Counsel appearing on behalf of the appellant at the outset submits that in this case 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).
3. Shri Prakash Kumar Singh, Learned Superintendent (AR) appearing on behalf of the Revenue reiterates the finding of the impugned order. He further submits that the appellant have not submitted any document before the lower authority whereby it be established that whether the sale is on FOR or otherwise.
4. I have carefully considered the submission made by both the sides and perused the records. I find that the law is settled in view of the judgment in the case of Ultratech Cement Ltd and Sanghi Industries 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. However it is admitted fact that the appellant have not produced the documents before the lower authority to establish the fact in this regard. Therefore, matter needs to be remanded for verification.
5. Accordingly, the impugned orders are set aside. Appeals are allowed 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.
(Pronounced in the open court on 31.10.2022 )
