Freight Charges not Included in Outward Transportation

[aneesh mittal]

CE Suptd has demanded excise duty , which was not included in outward transportation of final goods, however, Cenvat Credit on Service tax on outward transportation was availed by the Noticee/Manufacturer.

plz provide your valuable opinion on this issue. Thanks in advance.

[YAGAY and SUN]

The Department is rightly asking you to reverse the CENVAT Credit along with statutory interest.

[Udaya Chandran]

No CENVAT credit available on Service tax paid for outward transportation. 

[Udaya Chandran]

No CENVAT credit available on Service tax paid for outward transportation. 

AI Summary

Cenvat credit prohibition: Service tax on outward transportation must be reversed with statutory interest by manufacturer.
Cenvat credit on service tax paid for outward transportation of final goods is ineligible and must be reversed; the manufacturer must repay the reversed credit amount with statutory interest in respect of the erroneously availed credit on outward transportation services.