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Facts
The appellants had availed CENVAT credit on transportation and transit insurance on finished goods from factory to buyer’s premises on the basis that the place of removal was buyer’s premises where the goods were delivered since the terms of the contract were “FOR at buyer’s premises” and the transportation is included in assessable value of finished goods. CENVAT credit was disallowed since as per definition of “input services” transportation “upto the place of removal” was only allowed.
Held :
Since ownership and responsibility of goods were transferred by way of sale to the buyer on delivery at the destination, place of removal was buyer’s premises and therefore, CENVAT credit was allowed.
