Cenvat credit on outward freight to buyer premises depends on Board circular compliance and documentary verification.

Cenvat credit on service tax paid for outward transportation from the factory to the buyer's premises was discussed as admissible only if the claim matched the applicable Board circular and was supported by verifiable records. The appellate authority had not finally allowed or rejected the credit on principle; instead, it directed the lower authority to examine the relevant documents for the period in question. On that basis, the matter was treated as one of factual verification rather than legal disallowance, and the revenue challenge failed, leaving the assessee's position undisturbed subject to proof of the supporting evidence.

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Issues: Whether Cenvat credit was admissible on service tax paid on outward transportation of goods from the factory to the buyer's premises, where the assessee claimed compliance with the Board circular and the evidentiary record required verification.

Analysis: The claim for credit was founded on the assertion that the goods were supplied on a delivery basis to the buyer's premises and that the outward freight fell within the business activity covered by the applicable circular. The appellate authority had not finally accepted the claim on an unverified record, but had directed the lower authority to examine the relevant documents for the relevant period. In these circumstances, the order was treated as one requiring factual verification rather than as an erroneous denial on principle.

Conclusion: The credit claim was not finally negatived in the revenue appeal, and no interference was called for with the direction for verification.

Final Conclusion: The revenue challenge failed, and the assessee's position was left undisturbed subject to verification of the supporting evidence.

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