Case Law Details
M/s Ultratech Cement Ltd. Vs C.C.E. Kutch (Gandhidham) (CESTAT Ahmedabad)
We find that the Chartered/ Cost Accountant has certified that the goods were sold on FOR basis by the Appellant and the freight/ damages in transit was responsibility of Appellant till the goods reaches the doorstep of the Customers. Also we find that the consignment notes were raised upon the Appellant and they did not charge any amount except price of the goods from the customers. Thus in the light of above circular we find that as the ownership of the goods remained with the Appellants till the goods reached to the customer’s doorstep and the freight charges as well as damage (insurance) to the goods till destination were borne by the Appellant, they are eligible for the credit of service tax paid by them on outward freight.
It is clear from the Apex court judgment in the case of CCE & CU Vs. Roofit Industries Ltd. 2015 (319) ELT 221 (SC) that till the goods are handed over to the buyer, the cost is borne by the assessee or in other words where the goods are cleared on FOR basis the freight paid on outward transportation would qualify as “Input Service”.
FULL TEXT OF THE CESTAT JUDGMENT
The present appeals has been filed by M/s Ultractech Cement Ltd. against Order-in-Original No. KCH-EXCUS-000-COM-01-14-15 passed by Commissioner, Central Excise, Gandhidham, Kutch.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
