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TMI BlogFreight OutwardX X X X Extracts X X X X X X X X Extracts X X X X ..... Hi We have paid Service tax towards Freigh Outward transporation. i.e we have cleared our finsihed products to customer place. Now service tax paid for the same (Freight outward) shall we avail the service tax credit for the same. If Yes, plese refer case law for the same. - Reply By YASH SOOD - The Reply = Hello Nanda ji As per Rule 2 ( l ) of the Cenvat Credit Rule, 2004 , the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput service credit of tax paid on outward transportation expenses up to the place of removal only, is eligible. In your case if the place of removal is the factory gate you are not eligible for service tax credit on outward transportation expenses as these expenses were borne for clearance of goods from the factory gate upto the customer end. - Reply By NEERAJ KUMAR, RANCHI - The Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y = Hi, if the freight paid on outward transportation is included in the total assessable value,(transaction value) I mean if central excise duty has been paid on the value which includes freight on out ward transportation and place of removal is not factory gate but customer's place you will definitely get the credit of service tax. - Reply By YASH SOOD - The Reply = Hi, As per sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 4(3)(c) of the CE Act,1944 ,the term "Place of removal" means; i. a factory or any other place or premises of production or manufacture of the excisable goods; ii. a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty, iii. a depot, premises of a consignment agent or any other place or premises from where excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able goods are to be sold after their clearance from the factory. from where such goods are removed; So as per the facts transpiring from your case .....Since the place at which customers receives goods finally can not be termed as "place of removal" so in terms of Rule 2(l) of the Cenvat Credit Rule, 2004 read with the provisions under section 4(3)(c) of the CE Act,1944 the credits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ST paid on outward freight should not be admissible. Moreover the law is very clear . If the central excise duty has been paid on the basis of valuation of goods in terms of section 4 of the CE Act,1944 the Service tax is not leviable. As per the Boards circular ,the tax paid on volition is not eligible for credit. Thanks - Freight Outward - Query Started By: - NANDA H.L. Dated:- 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-1-2012 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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