TaxTMI 
TaxTMI 
CENVAT CREDIT ON OUTWARD TRANSPORTATION
24 Jun 2010 
2 Replies 
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CENVAT credit on outward transportation contested; tribunal distinction noted and Supreme Court guidance is being sought.
Entitlement to CENVAT credit on outward transportation to GTAs is disputed; a tribunal decision supporting creditability was distinguished in India Cements Ltd. v. CCE, making applicability fact specific. The core legal inquiry is whether the service qualifies as an input service and whether creditable freight is limited to removal up to an assessee's depot or extends to customer deliveries. Parties request higher court authority or rule amendments and seek guidance on Cenvat refund claims under Rule 5 and Notification No.5/2006 when consolidated annually. (AI Summary)
Entitlement to CENVAT credit on outward transportation to GTAs is disputed; a tribunal decision supporting creditability was distinguished in India Cements Ltd. v. CCE, making applicability fact specific. The core legal inquiry is whether the service qualifies as an input service and whether creditable freight is limited to removal up to an assessee's depot or extends to customer deliveries. Parties request higher court authority or rule amendments and seek guidance on Cenvat refund claims under Rule 5 and Notification No.5/2006 when consolidated annually. (AI Summary)
Dear All, We are tried our best to convince the local and Divisional heads of Service Tax that we are entitled to avail CENVAT credit on GTA paid by us in light of decission of Bench of tribunal-Banglore in the case of ABB Ltd. WE REQUEST ALL TO LET ME KNOW IF THERE IS ANY DECISSION FROM SUPREME COURT IN THIS REGARD. KINDLY LET ME KNOW THE NO. AND DATE OF THE DECISSION,IF ANY. THANKS