Service Tax Paid our Outwards Freight

[Zala Jaydeep]

As Paid Service Tax on Outward Freight then CENVAT Credit allowed or not.

AI Summary

Cenvat credit on freight - admissible where sale is on FOR/destination basis; otherwise treated as output service.
Cenvat Credit on freight is disputed: one position holds outward carriage is an output service and not creditable when place of removal is the manufacturer's premises. The contrary position, supported by an administrative circular and tribunal/high court rulings, allows credit where the sale is on a FOR/destination basis so that freight is an input service and creditable.