Availability of Cenvat Credit of Service Tax paid on Outward Transportation – PART - III - Order of the commissioner (appeals) in the matter of NHK Springs Ltd. has been reversed

Honorable tribunal has reversed the order of Commissioner (Appeal) in the matter of COMMISSIONER OF C. EX., INDORE Versus N.H.K. SPRINGS LTD. reported in 2007 -TMI - 1165 - CESTAT NEW DELHI (Central Excise Section).  In its order, honorable tribunal has held that, Cenvat Credit of Service Tax paid on Outward transportation is not allowed. The removal of the final products from the factory premises, so as to clear the factory premises of such goods, would be clearance, and outward transport beyond the place of removal, cannot be read in the word 'clearance'.

Earlier, commissioner (appeals) has allowed the appeal of NHK Springs Ltd. reported in 2006 -TMI - 752 - COMMISSIONER OF C.E. (APPEALS) (Central Excise Section) by holding that Service Tax paid on outward transportation from the place of removal is allowed as Cenvat Credit.