2012 (10) TMI 297 - AT - Service Tax

Cenvat Credit - Input Service - Held that - Cenvat credit can be availed on Service tax paid on outward freight of final goods cleared from the factory to the premises of the customer.As decided in case of COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX BANGALORE Versus M/s ABB LTD. and others 2011 (3) TMI 248 - KARNATAKA HIGH COURT Outward Transportation can be treated as Input Service - in favour of assessee.

Summary

The appeal was against the Commissioner (Appeals) order dated 8.8.2008 regarding CENVAT credit on Service Tax paid on outward freight. The Tribunal held that outward transportation before 1.4.2008 is considered an 'input service'. The demand for tax amounting to Rs. 71,260 was set aside, and the appeal was allowed with consequential relief.