CENVAT credit on outward freight was allowed for the relevant period because binding High Court precedent governed the issue.

CENVAT credit on service tax paid for outward transportation beyond the place of removal was treated as admissible for the relevant period because the issue had already been settled by a binding High Court ruling. The Tribunal followed that ruling, noting that it remained effective up to 1-4-2008 and that no stay had been produced against it. On that basis, the Revenue's contrary challenge was rejected and the credit was held allowable for the period in question.

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Issues: Whether CENVAT credit on service tax paid on outward transportation beyond the place of removal was admissible for the relevant period.

Analysis: The controversy was held to be governed by the existing High Court ruling on outward freight, which had settled that the interpretation remained valid up to 1-4-2008 and answered the questions of law in favour of the assessee. As no stay was shown against that ruling, the Tribunal applied it to the present period and found no reason to sustain the Revenue's challenge.

Conclusion: The credit on outward transportation was held admissible for the relevant period, and the Revenue's challenge failed.

Final Conclusion: The appeal was dismissed in view of the settled position that outward freight credit up to the relevant date was allowable.

Ratio Decidendi: Where the issue of admissibility of CENVAT credit on outward transportation up to the place of removal has already been settled by a binding High Court ruling for the relevant period, and no stay operates against that ruling, the Tribunal must follow it and reject the contrary Revenue challenge.

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