TaxTMI 
TaxTMI 
2011 (12) TMI 404
X X X X Extracts X X X X
X X X X Extracts X X X X
....e availing benefit of cenvat credit. It was found that they had taken cenvat credit of service tax paid on outward freight. The Revenue contended that outward freight is not input or input services for the assessee and therefore the cenvat credit taken is incorrect and inadmissible. The case was adjudicated and on appeal the Commissioner (Appeals) set aside the impugned order and allowed the appeal filed by the assessee. 2. The contention of the Revenue is that the Commissioner (Appeals) has erred while dropping the demand and the present case is regarding the admissibility of cenvat credit of service tax paid on outward transportation from the factory gate which is place of removal for the assessee. It was also mentioned that as per the B....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... step (ii) the seller bore the risk of loss of or damage to the goods during transit to the destination; and (iii) the freight charges were an integral part of the price of goods. In such eases, the credit of the service tax paid on the transportation up to such place of sale would be admissible if it can be established by the claimant, of such credit, that the sale and the transfer of property in goods (in terms of the definition as under Section 2 of the Central Excise Act, 1944 as also in terms of the provisions under the Sale of Goods Act, 1930) occurred at the said place. Therefore, if the service tax is paid on transportation charges, in such cases, it fell within the phrase "clearance of final products from the place of removal" and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to certain ancillary services as mentioned above which ensures proper delivery of the finished product upto the customer. Therefore, all such services rendered by the manufacturer are included in the definition of input service'. However as the legislature has chosen to use the word 'means' in this portion of the definition, it has to be construed strictly and in a restrictive manner. Alter defining the 'input service' used by the manufacturer in a restrictive manner, in the later portion of the definition, the legislature has used the word 'includes'. Therefore, the later portion of the definition has to be construed liberally. Specifically what are the services which fall within the definition of 'input service' has been clearly set out ....