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Issues involved:
- Delay in filing the appeal - Entitlement to Cenvat credit of service tax paid on outward transportation of finished products Analysis: 1. Delay in filing the appeal: The appellant, M/s. Kandoi Fabrics (P) Ltd., faced a delay of 145 days in filing the appeal. The advocate for the appellant explained that initially, they decided against filing the appeal. However, after a favorable decision by the Larger Bench of the Tribunal in the case of M/s. ABB Ltd. & Ors, the appeal was filed. The advocate cited a similar case, M/s. Daman Polyfab, where the delay was condoned under similar circumstances. The JDR argued against condoning the delay, stating that it could lead to numerous applications on the same ground. The judge considered the timeline of events, noting that the Larger Bench decision came after the appeal deadline had passed. Despite this, relying on the precedent and reasoning that the issue was covered by the Larger Bench decision, the judge condoned the delay and proceeded to decide the appeal. 2. Entitlement to Cenvat credit of service tax on outward transportation: The core issue in the appeal was whether the appellant was entitled to claim Cenvat credit for the service tax paid on outward transportation of their final products. Referring to the decision of the Larger Bench in the case of M/s. ABB Ltd. v. CCE, the judge highlighted that the outward transportation of goods from the place of removal qualifies as an input service under the category of 'Activity relating to the business.' Based on this interpretation, the judge set aside the impugned order and allowed the appeals, granting consequential relief to the appellant. In conclusion, the judgment addressed the delay in filing the appeal, ultimately condoning it based on the precedent set by the Larger Bench decision. The entitlement to Cenvat credit for service tax on outward transportation was established in favor of the appellant, aligning with the interpretation provided by the Tribunal's previous ruling.
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