Eligibility of CENVAT credit of service tax paid on goods transported from factory to depot and sold therefrom -reg.

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..... CENVAT Credit Rules, 2004 (hereinafter referred to as 'Credit Rules'), the difinition of 'input service' includes 'outward transportation up to the place of removal'. The expression 'place of removal' has not been defined in the Credit Rules and therefore in terms of rule 2 (t) of the said Rules, the said expression shall have the same meanings assigned to it in the Central Excise Act, 1944 or th .....

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..... eligible to take credit of service tax paid on transportation of goods up to such depot. The doubt appears to be based on reasoning that since such goods are not charged to duty on the basis of valuation under section 4 of the Central Excise Act, the definition of the expression 'place of removal' given in that section would not apply in case of such goods. 03. The matter has been examined at t .....

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..... sales of goods, the credit of service tax paid on the transportation of goods up to such depot would be eligible, irresepective of the fact, whether the goods were chargebale to excise duty at specific rates or ad valorem rates on the basis of valuation under section 4 or 4A of the Central Excise Act. (Gautam Bhattacharya) Commissioner (Service Tax) - Circular - Trade Notice - Pu .....

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