Cenvat credit on transportation-related input services upheld on prima facie review; stay applications were rejected.

Cenvat credit on transportation-related input services was treated as admissible where inward transportation of inputs and capital goods, and outward transportation up to the place of removal, were accepted within the definition of input services. On a prima facie review, the Tribunal found no illegality in the orders under challenge and held there was no basis to suspend their operation at the interlocutory stage. The stay applications were accordingly rejected.

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Issues: Whether the Revenue was entitled to stay of the operation of the orders allowing Cenvat credit on transportation-related input services.

Analysis: The Tribunal noted that the lower authority had accepted inward transportation of inputs and capital goods, and outward transportation up to the place of removal, as falling within input services. On a prima facie assessment, it found no illegality in the impugned orders and therefore no basis to suspend their operation at the interlocutory stage.

Conclusion: The stay applications were rejected.

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