CENVAT CREDIT OF SERVICE TAX PAID ON FREIGHT O/W

[PRADEEP GARG]

Dear Sir,

In the present scenario, can it be clarified that what is current legal position, if we avail cenvat credit of service pax paid on freight (domestic sale-o/w) keeping in view of the fact that Assessable value is inclusive of freight charges i.e. unit rates are FOR (door delivery). Should it be allowed or not ?

Thanks,

PRADEEP GARG

AI Summary

Legal Perspective on CENVAT Credit for Service Tax on Freight Charges in Domestic Sales Explained A participant inquired about the current legal stance on availing CENVAT credit for service tax paid on freight charges for domestic sales, where the assessable value includes freight charges with unit rates being FOR (door delivery). Two respondents concurred that input credit is permissible on outward freight up to the place of removal, thus supporting the view that credit can be taken in this scenario.