Cenvat credit of service tax paid on goods transported from factory to depot admissible irrespective of basis of valuation of goods

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....B.E. & C. Letter F.No. 137/3/2006-CX. 4, dated 2-2 -2006) Subject: Eligibility of CENVAT credit of service tax paid on goods transported from factory to depot and sold therefrom - Reg. It may be recalled that under the CENVAT Credit Rules, 2004 (hereinafter referred to as 'Credit Rules'), the definition of 'input service' includes 'out ward transportation up to the place of removal' The expr....

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....acturing and clearing goods on payment of duty at specified rates (for ex ample cement) or on the basis of valuation with reference to retail sale price (for example refrigerators), and selling the goods from a depot, is also eligible to take credit of service tax paid on transportation of goods up to such depot. The doubt appears to be based on reasoning that since such goods are not charged to d....