2009 (9) TMI 321 - AT - Central Excise

Cenvat Credit- Input Services- Input service credit availed by assessee in respect of service tax paid for outward transportation was denied. In the light of the decision of ABB Ltd. v. CCE & ST 2009 -TMI - 34139 - CESTAT, BANGALORE, in which held that service availed by a manufacturer for outward transportation of final products from place of removal should be treated as an input service, thereby enabling the manufacturer to take the credit of service tax paid on value of such services, held that- set aside the impugned order and allow the appeal.

Summary

The appeal was about the availability of credit of service tax paid on outward transportation as input service credit. The Commissioner's decision was based on a previous Tribunal ruling, but the High Court and a Larger Bench of the Tribunal ruled in favor of the appellant. Therefore, the impugned orders were set aside, and both appeals were allowed with consequential relief.