2011 (7) TMI 842 - AT - Service Tax

Cenvat credit - outward transportation - Hon ble High Court has held that outward transportation of finished goods from the place of removal is covered by the definition of input service upto 31.3.2008 and service tax paid thereon is eligible as CENVAT credit upholding the Larger Bench decision in ABB Ltd. v. CCE & ST 2011 -TMI - 203985 - KARNATAKA HIGH COURT - Decided in favor of the assessee

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessees regarding the entitlement to CENVAT credit of service tax paid on outward transportation of finished goods. The decision was based on the Hon'ble Karnataka High Court's ruling that such transportation is considered an "input service" eligible for CENVAT credit until March 31, 2008. The tribunal upheld the Commissioner (Appeals) order and rejected the Revenue's appeal. (2011 (7) TMI 842 - CESTAT, CHENNAI)