Input service credit on outward transportation turns on inclusion of freight in assessable value and compliance with the Board circular.

Input service credit on outward transportation from the factory gate is described as dependent on compliance with the relevant Board circular and on whether the transportation cost was included in the assessable value. Because that factual position needed verification, the matter was sent back to the original authority for fresh examination after giving the assessee an opportunity to present its case. The eligibility to credit was therefore left open for reconsideration in light of the circular and the assessable value treatment, rather than being finally decided on merits.

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Issues: Whether input service credit on outward transportation of final products from the factory gate is admissible when the transportation cost is claimed to form part of the assessable value under the applicable circular.

Analysis: The entitlement to credit was held to depend on whether the assessee had satisfied the conditions of the Board circular and whether the outward transportation cost had been included in the assessable value. Since this factual aspect required verification, the matter was sent back for fresh examination by the original authority after giving the assessee an opportunity to present its case.

Conclusion: The issue was not finally decided on merits and was remanded for reconsideration of eligibility to credit in the light of the circular and the assessable value position.

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