Cenvat credit allowed for outward transportation of finished goods, Tribunal grants relief.

The Tribunal held that Cenvat credit on outward transportation of finished goods up to the depot is admissible, regardless of valuation under section 4 or 4A of the Central Excise Act. Relying on a previous decision and legal principles, the Tribunal allowed the appeal, setting aside the impugned order and granting relief to the appellant.

---

---

Issues:
Entitlement to Cenvat Credit on service tax paid on outward transportation of finished goods up to the depot when valuation done under section 4A of Central Excise Act.

Analysis:
The issue before the Appellate Tribunal was whether the appellant is entitled to the Cenvat Credit for service tax paid on outward transportation of finished goods up to the depot when the valuation was conducted under section 4A of the Central Excise Act. The appellant argued that the credit was denied by the Learned Commissioner based on the premise that since the goods were valued under section 4A, the factory gate should be considered the place of removal, making Cenvat credit inadmissible for transportation beyond the factory gate. However, the appellant cited a previous order where the credit was allowed on identical facts, suggesting that the issue was no longer res-integra. The Authorized Representative for the revenue reiterated the findings of the impugned order.

Upon careful consideration of the submissions and perusal of records, the Tribunal found that the facts in the present case were identical to a previous case decided by the tribunal on 31.10.2017. Referring to the decisions of the Chhattisgarh High Court and relevant tribunal and board circulars, it was held that regardless of valuation under section 4 or 4A of the Central Excise Act, the depot being the place of removal, the credit for outward transportation up to the depot is admissible. The Tribunal also reproduced the decision from the previous case to support this conclusion, noting that the issue was settled as there was no appeal filed by the revenue as per the record of the current appeal.

In light of the precedent set by the previous tribunal decision and the legal principles established, the Tribunal concluded that the Cenvat credit on outward transportation up to the depot is indeed admissible. Consequently, the impugned order was set aside, and the appeal was allowed, granting relief as per the law.

---