Cenvat credit on outward freight for finished goods is admissible when borne by the manufacturer as input service.

Cenvat credit on service tax paid for outward transportation of finished goods from the factory gate to customers' premises was held admissible where the freight was borne by the manufacturer and formed part of the value of excisable goods. The analysis followed the Larger Bench view that such outward transportation qualifies as an input service, and the earlier contrary view was not applied. On that basis, credit was allowed in relation to the freight service used for movement of the finished goods.

---

---

Issues: Whether Cenvat credit of service tax paid on outward transportation of finished goods from the factory gate to customers' premises is admissible.

Analysis: The issue was treated as settled by the Larger Bench decision holding that transportation of finished goods from the factory gate to the customer's premises forms an input service. The freight was borne by the manufacturer and formed part of the value of excisable goods, and the earlier contrary view was not followed.

Conclusion: Cenvat credit on service tax paid for outward transportation was admissible and the assessee succeeded on the issue.

---