Cenvat credit on factory-to-depot transport allowed where place of removal was not established

Service tax paid on transport of goods from the manufacturing factory to the C&F agent's godown was eligible for Cenvat credit because the credit rule allows input service credit for transportation up to the place of removal. The invoices showed removal to self, and the goods were transported from the factory to the C&F agent's depot before sale. On those facts, the claimed place of removal was not established on the record, so the demand for denial of credit could not be sustained.

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Issues: Whether service tax paid on transport of goods from the manufacturing factory to the C&F agent's godown was eligible for Cenvat credit as transportation up to the place of removal.

Analysis: The invoices showed removal to self, and the revenue's own case was that the goods were transported from the factory to the C&F agent's depot, from where they were sold. In these circumstances, the factual finding that the place of removal was not established was held to be contrary to the record. The credit rule specifically permits credit of service tax paid on transport up to the place of removal.

Conclusion: The assessee was entitled to the credit and the demand could not be sustained.

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