M/S. J K Tyre & Industries Ltd vs Commissioner Of Central Excise
- CitationService Tax Appeal No. 936 - 937 of 2011-Ex (SM)
Ratio decidendi
The rule this decision rests on
Where goods are supplied on FOR destination terms, the question whether the assessee may take Cenvat credit on GTA services turns on compliance with the conditions of the CBEC circular dated 23.8.2007 (No. 97/8/07); the assessee's entitlement to credit is conditional on that compliance, which must be verified by the adjudicating authority on the facts, the assessee having paid the freight and included it in the assessable value and the ownership of goods having remained with the buyer until delivery being matters to be examined rather than decided at the appellate stage.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-In-Appeal No. IND-I-52 & 53/2011 dated 31/01/2011 passed by Commissioner of Central Excise & Customs (Appeals), Indore]
For approval and signature:
Honble Mr Ashok Jindal, Member (Judicial)
1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3 Whether Their Lordships wish to see the fair copy of the Order?
4 Whether Order is to be circulated to the Departmental authorities?
M/s. J K Tyre & Industries Ltd. Appellants
Vs.
Commissioner of Central Excise Respondent
Indore
Appearance:
Shri Ganesh Mishra, Representative for the Appellants
Shri R K Mishra, AR for the Respondent
CORAM:
Hon'ble Shri Ashok Jindal, Member (Judicial)
Date of Hearing /decision: 18.06.2015
ORDER NO. FO/ 52011-52012/2015-Ex(SM)
Per Ashok Jindal :
The short issue involved in the matter is that whether the appellants are entitled to take Cenvat credit on GTA services wherein the goods have been supplied to the premises of buyers on FOR destination basis.
2. After hearing both the parties, I observe that it is the contention of the appellant that they have paid the cost of transportation and same has been included in the assessable value. Moreover, the ownership of the goods were with the buyers till the goods received by the customers. It is the contention of the appellant that they have complied with the condition of CBEC Circular No. No. 97/8/07 dated 23.8.07. Therefore, they are entitled to take Cenvat Credit. The issue is to be examined as to whether they appellant has complied with the condition of CBEC Circular No. No. 97/8/07 dated 23.8.07. Therefore, matter needs examination at the end of adjudicating authority. In these terms, the impugned orders are set aside. Appeals are allowed by way of remand to the adjudicating authority to verify whether the appellant has complied with the condition of CBEC Circular No. 97/8/07 dated 23.8.07. If appellant has complied with the condition of said CBEC Circular, the appellant is entitled to take cenvat credit. With these terms, appeals are disposed of.
(Dictated and pronounced in the open court )
( Ashok Jindal ) Member(Judicial)
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