Service Tax Credit position prior 01.04.2008 on Outward Freight

[CLARENCE PEREIRA]

Service Tax Credit on Outward Freight is a contentious issue.owever wef 01.04.2008 it was clearly clarified that Service Tax credit on outward freight,ie beyond the place of removal is not eligible as input credit.What is the position prior 01.04.2008? Is credit available?Any case laws?

[Surender Gupta]

The issue prior to 1.4.2008 is subject to judicial scrutiny. Though there is some decision, but facts and circumstances of the case, time when credit taken, the period for which scn issued etc. are the relevant factors to be seen. You may find the cases on this website.

AI Summary

Service tax credit on outward freight remains legally uncertain before regulatory clarification, hinging on facts and timing of credit. Service tax credit for outward freight beyond the place of removal was disallowed after the April 2008 clarification. Prior to that, the position was unsettled and required judicial scrutiny, with outcomes depending on the facts, when credit was taken and the period covered by any show cause notice; existing decisions varied by case-specific circumstances.