CENVAT credit on outward transportation service tax upheld as admissible, with Revenue's challenge rejected.

CENVAT credit on service tax paid for outward transportation of final products was held admissible under the CENVAT Credit Rules, 2004. The Tribunal relied on a Larger Bench ruling and the Karnataka High Court's view that such outward transportation service tax qualifies for credit. In the absence of any contrary decision from a higher appellate forum, the Revenue's challenge was found unsustainable and the appeal was rejected.

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Issues: Whether CENVAT credit of service tax paid on outward transportation of final products was admissible under the CENVAT Credit Rules, 2004.

Analysis: The dispute concerned admissibility of credit on outward transportation services for the relevant period. The Tribunal noted that the issue had already been decided in favour of the assessee by the Larger Bench and that the Karnataka High Court had also upheld the view that service tax paid on outward transportation services is admissible as CENVAT credit. In the absence of any contrary decision of a higher appellate forum, the Revenue's challenge lacked merit.

Conclusion: CENVAT credit on service tax paid for outward transportation of final products was held admissible, and the Revenue's appeal was rejected.

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