Outward freight as input service supports Cenvat credit claim and justifies waiver of pre-deposit pending appeal.

Service tax paid on goods transport agency services used for outward transportation of finished goods beyond the factory gate was treated as falling within the broad definition of input service under Rule 2(l) of the Cenvat Credit Rules, 2004. On that basis, the appellant established a strong prima facie case against denial of Cenvat credit, and interim protection was granted by waiving pre-deposit of service tax and penalty and staying recovery during the appeal.

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Issues: Whether service tax paid on goods transport agency services used for outward transportation of finished goods beyond the factory gate constituted input service under Rule 2(l) of the Cenvat Credit Rules, 2004, and whether the appellant made out a case for waiver of pre-deposit and stay of recovery.

Analysis: The definition of input service was treated as broad enough to include transportation of finished goods from the factory to the customers' premises. On that basis, the appellant was found to have a strong prima facie case against denial of Cenvat credit, warranting interim protection from recovery during the appeal.

Outcome: Pre-deposit of service tax and penalty was waived and recovery was stayed during the pendency of the appeal.

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