Eligibility of CENVAT credit of service tax paid on goods transported from factory to depot and sold therefrom -reg.

CENVAT credit eligibility affirmed for service tax on outward transportation to depot, regardless of duty valuation method.

CENVAT credit for service tax on outward transportation is available up to the depot for depot sales because 'place of removal' in the Credit Rules is to be read with definitions in the Central Excise Act; this applies regardless of whether duty is charged at specific rates or on an ad valorem valuation basis, and credit entitlement is independent of duty valuation methods.