GTA SERVICE TAX CREDIT ADMISSIBILITY ON OUTWARD FREIGHT

[SANDESH SHINDE]

Dear Sir,

Please explain regarding Service tax credit admissibility on outward freight under following circumstances 1) In the case of clearance of finished goods from the factory to the customers in such case whether we as a manufacturer has paid service tax under reverse charge can avail cenvat credit of such outward freight. 2) In the case of clearance of goods to depot which is not registered under excise whether we can avail such credit in such situation also, Please explain, Please give us any references regarding this.Thanks & regards.

AI Summary

Clarification on CENVAT credit eligibility for service tax on outward freight to customers and unregistered depots. Review ABB Ltd. case. A user inquired about the admissibility of service tax credit on outward freight for two scenarios: when finished goods are cleared from the factory to customers, and when goods are sent to an unregistered depot. The user sought clarification on whether a manufacturer paying service tax under reverse charge could avail of CENVAT credit in these situations. The response referenced a legal judgment from the Karnataka High Court, suggesting that the user review the case of Commissioner v. A.B.B. Ltd. for guidance on the matter.