Question

Is the Cenvat credit of service tax paid on outward transportation is available or not where the goods are delivered on FOR basis and the ownership of the goods transfers at buyers premises. Situation after issuing of the Circular No. 1065/4/2018-CX dated 08.06.018.

Answer

Scope of circular: The circular issued by CBEC do not over-rule the law. This is a well-settled principle decided by various judgments pronounced by hon'ble high court and supreme court.

Law applicable: There is no change in the definition of input service as given in CENVAT Credit Rules 2004.

Natural justice and intend of Law: The intention of CENVAT Credit Rules is to provide the ITC of input and input service if it is included in the value of goods.

Facts of the case: In number of cases the judgement is given by the court to disallow the credit on the basis of some specific facts. This may or may not be in your case.

Conclusion: Study the facts of CCE & ST vs. Ultra Tech Cement Ltd dated 1.2.2018. This case is relating to distribution through depot.
On the basis of above, there is a possibility of getting the credit. You should not forego it outrightly. (Reply dt 13/03/2019)