Freight Outward

[NANDA H.L.]

Hi

We have paid Service tax towards Freigh Outward transporation. i.e we have cleared our finsihed products to customer place.  Now service tax paid for the same (Freight outward) shall we avail the service tax credit for the same.  If Yes, plese refer case law for the same.

AI Summary

Cenvat credit on outward freight depends on place of removal; factory gate removal generally precludes credit for beyond-gate transport.
Cenvat credit for service tax on outward transportation is available only for transport up to the place of removal; where the place of removal is the factory gate, service tax on freight beyond that point is not creditable. If outward freight is included in the transaction value and excise duty has been paid on that value, credit treatment may change and service tax may not be leviable, with tax paid on valuation-driven components generally excluded from credit by departmental guidance.