Cenvat credit on outward transportation service

[Ajay Kedia]

WE ARE REGISTERED FOR GTA AND ARE MANUFACTURER OF DIFFERENT PRODUCTS. WE HAVE TO PAY TRANSPORTATION CHARGES FOR DELIVERY OF OUR FINAL PRODUCTS. WHETHER CENVAT VREDIT CAN BE AVAILED ON THE SERVICE TAX PAID FOR OUTWARD TRANSPORTATION OF OUR FINISHED PRODUCTS. UNDER WHICH RULE / SECTION IT IS COVERED. THOUGH SOME JUDGEMENTS ARE THERE EVEN THOUGH OUR RANGE OFFICERS ARE DECLINING TO ALLOW CENVAT ON OUWARD TRANSPORTATION SERVICE TAX.PLEASE CLARIFY IN DETAIL.

AI Summary

Manufacturer Queries Cenvat Credit Eligibility on Outward Transport; Rule 2(l) Limits, Past Judgments May Allow A manufacturer inquired about the eligibility to claim Cenvat credit on service tax paid for outward transportation of finished products. The response indicated that under Rule 2(l) of the Cenvat Credit Rules, 2004, credit is generally not allowed for such transportation. However, it was noted that certain judgments permitted credit for periods before amendments to the rule. The manufacturer was advised to refer to a decision by the Larger Bench of CESTAT that allowed credit during the relevant period. A request was made for clarification on the specific case referenced, possibly ABB Ltd., or for further guidance.