Cenvat credit on service tax paid

[CA.ANCHAL RASTOGI]

our co ia a manf. co and sell its material on f.o.r. basis. can we take cenvat credit of s.t. paid on outward frieght and use for payment of e.d.. is there any case law of sc or hc according to which s.t. paid on outward frieght is not eligible for credit because it is not input sevice, even goods sold on f.o.r. basis. if, yes, pl let me know.

AI Summary

Cenvat credit eligibility hinges on place of removal-destination sales can permit service tax on outward freight as credit.
Cenvat credit for service tax on outward freight is admissible only if the sale and transfer of property in goods occur at the destination (the place of removal); where ownership and risk remain with the seller until delivery and freight forms part of the price, the service tax on transportation up to that place may be taken as Cenvat credit, whereas factory gate or depot sales generally preclude such credit.