Cenvat credit on outward transportation allowed up to the place of removal under the unamended rule; later amendment applied prospectively.

Cenvat credit on outward freight, transportation and outward delivery services was treated as admissible for the period governed by the unamended input service rule, because transportation up to the place of removal fell within the eligible scope. The later change substituting "from the place of removal" with "upto the place of removal" by Notification No. 10/2008-C.E. (N.T.) was applied prospectively. The appeal was also restored to its original number after dismissal for non-prosecution, on the explanation that previous counsel was absent due to illness. The order under challenge was set aside and consequential relief followed.

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Issues: (i) Whether the appeal dismissed for non-prosecution should be restored to its original number. (ii) Whether Cenvat credit of service tax on outward freight, transportation and outward delivery services was admissible for the relevant period.

Issue (i): Whether the appeal dismissed for non-prosecution should be restored to its original number.

Analysis: The appellant explained the absence of earlier counsel due to illness and sought restoration. The dismissal order was recalled and the appeal was restored, after which the matter was taken up for hearing.

Conclusion: The appeal was restored to its original number.

Issue (ii): Whether Cenvat credit of service tax on outward freight, transportation and outward delivery services was admissible for the relevant period.

Analysis: The controversy was covered by the Supreme Court decisions on the meaning of "input service" and the scope of transportation from the place of removal. The relevant interpretation permitted credit on transportation up to the place of removal for the period prior to the amendment substituting "from the place of removal" with "upto the place of removal" by Notification No. 10/2008-C.E. (N.T.).

Conclusion: The credit was admissible for the relevant period and the assessee succeeded on merits.

Final Conclusion: The impugned order was set aside and the appellant obtained consequential relief.

Ratio Decidendi: Cenvat credit on outward transportation is admissible up to the place of removal for the period governed by the unamended rule, and the later amendment operates prospectively.

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