Cenvat credit of service tax paid on goods transported from factory to depot admissible irrespective of basis of valuation of goods

Cenvat credit of service tax admissible for transportation to depot regardless of valuation basis, clarifying eligibility.

Cenvat credit for service tax on transportation to a depot is allowable where goods are sold from that depot because the Credit Rules treat outward transportation up to the place of removal as an input service, and the statutory definition of place of removal applies to the Credit Rules. Eligibility for credit is independent of the method used to compute excise duty, so goods charged at specific rates or by valuation do not lose entitlement to credit for transportation to depot.