Topic

place of removal

Place of removal refers to the location where goods are removed from a factory for Central Excise purposes. This page provides latest judgments, case analysis and updates from Indian courts on place of removal under CENVAT Credit Rules.

6 articlesLatest May 2026
Cenvat Credit on Outward Freight | Ownership Transfer at Buyer’s Premises Permits Credit Post-01.04.2008 Under Rule 2(l) : CESTAT Kolkata
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Cenvat Credit on Outward Freight | Ownership Transfer at Buyer’s Premises Permits Credit Post-01.04.2008 Under Rule 2(l) : CESTAT Kolkata

CESTAT Kolkata rules that manufacturers can claim Cenvat credit for service tax paid on outward freight even after April 1, 2008, if ownership of goods transfers at the buyer’s premises, as per the pre-amendment definition of 'place of removal'. This clarifies a critical ambiguity for manufacturers shipping to distant customers under contract terms requiring them to bear delivery costs and risk.

CENVAT Credit Admissible for GTA & Insurance Services Under FOR Basis Sales If Buyer's Premises is Place of Removal : CESTAT Chennai
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

CENVAT Credit Admissible for GTA & Insurance Services Under FOR Basis Sales If Buyer's Premises is Place of Removal : CESTAT Chennai

CESTAT Chennai rules that CENVAT credit on Goods Transport Agency (GTA) and insurance services is permissible when the buyer's premises is treated as the 'place of removal' under a Free-On-Rail (FOR) contract. The tribunal remanded the case for document verification, reinforcing that input service credit extends up to the buyer's location in FOR sales, impacting manufacturers and service providers under CENVAT Credit Rules.

CENVAT Credit Rules 2004 | Outward Freight Under FOR Sales Qualifies as Input Service if Buyer's Premises is Place of Removal : CESTAT Hyderabad
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

CENVAT Credit Rules 2004 | Outward Freight Under FOR Sales Qualifies as Input Service if Buyer's Premises is Place of Removal : CESTAT Hyderabad

CESTAT Hyderabad ruled that where goods are sold on FOR basis with freight included in assessable value and risk retained till delivery, outward transportation up to the buyer's premises qualifies as 'input service' under Rule 2(l) of CENVAT Credit Rules 2004. This clarifies that the 'place of removal' can extend beyond the factory gate for FOR sales, allowing manufacturers to claim CENVAT credit on outward freight charges.

FOR Contracts | Freight & Insurance Charges Must Be Included in Assessable Value for Central Excise Duty : CESTAT Hyderabad Overturns Prior Rulings
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

FOR Contracts | Freight & Insurance Charges Must Be Included in Assessable Value for Central Excise Duty : CESTAT Hyderabad Overturns Prior Rulings

CESTAT Hyderabad rules that under Free-On-Rail (FOR) contracts, freight and insurance charges form part of the assessable value for Central Excise Duty when the sale concludes at the buyer’s premises. This decision sets a precedent for excise valuation, impacting manufacturers and suppliers under similar contractual terms.

Rule 2(l) CENVAT Credit Rules | 'Place of Removal' Determined by Contractual Delivery Terms, Not Factory Gate: CESTAT Chennai
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Rule 2(l) CENVAT Credit Rules | 'Place of Removal' Determined by Contractual Delivery Terms, Not Factory Gate: CESTAT Chennai

CESTAT Chennai rules that CENVAT credit on outward transportation is admissible if the sale contract specifies delivery at the buyer’s premises, overriding the department’s interpretation of the 'place of removal' as the factory gate. The Tribunal also bars extended limitation due to lack of legal malice, reinforcing that input service eligibility hinges on contractual agreements rather than invoice clauses.

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