Input service credit on outward freight was upheld for transport beyond the place of removal under business-related activity principles.

Input service credit was held admissible on Service Tax paid for outward transportation of final products from the factory to the customer's premises, because transportation beyond the place of removal was treated as falling within "activities relating to business" for input service credit purposes. The admissibility issue was considered settled by a Larger Bench ruling, and the appeal was allowed. Delay in filing the appeal was also condoned.

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Issues: Whether credit of Service Tax paid on outward transportation of final products from the factory to the customer's premises was admissible as input service.

Analysis: The delay in filing the appeal was condoned. The admissibility of credit on outward freight was treated as settled by the Larger Bench ruling recognising transportation beyond the place of removal as covered by the expression "activities relating to business" for purposes of input service credit.

Conclusion: Credit on Service Tax paid for outward transportation from the factory to the customer's premises was held admissible and the appeal was allowed.

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