TaxTMI 
TaxTMI 
2026 (8) TMI 517
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.... case are that the appellants are engaged in manufacturing construction chemicals falling under Chapters 32 & 38 of the Central Excise Tariff Act, 1985. During the underlying period, the Appellant paid excise duty on clearance of manufactured goods,in cash as well as by utilizing eligible CENVAT credit in accordance with the CENVAT Credit Rules, 2004. 2.1 During the underlying period, the appellant entered into various contracts for supplying goods to various customers on F.O.R. destination basis. Therefore, the freight for the outward transportation formed an integral part of the price charged for goods. 2.2 In respect of the outward transportation services received till 31.03.2008, the appellant inter alia availed Cenvat Credit on t....
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....e the impugned OIAs. Here, it is pertinent to note that no findings were provided in the first impugned Order-in-Appeal on the instant issue. The second impugned Order-in-Appeal, provided the following findings: (a) The Appellant is dispatching the finished goods to various consignees either from factory gate/ depots which are considered as 'place of removal'. The service tax paid by the Appellant on transportation services related to output services which are rendered by the transport operators/ agencies. Such service tax paid as consignors does not make them provider of transport services and hence, credit is not eligible. The credit of service tax paid by the consignors shall be eligible as credit to consignees. (b) In ....
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....of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;" 3.2 He, therefore, submits that the transportation servic....
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....ransportation services received before 01.04.2008 used for clearance of final goods from factory/depot and transporting the same to the customer's premise qualify as input services, on which the appellant would be eligible to Cenvat Credit or not ? 7. We find that the said issue has been dealt by the Larger Bench of this Tribunal in the case of ABB Ltd. (supra), which has been affirmed by the Hon'ble Karnataka High Court, which was further affirmed by the Hon'ble Supreme Court, wherein the Larger Bench of this Tribunal has held as under : "18. For admissibility to credit for outward transportation there is no requirement that the cost of freight should enter into the transaction value of the manufactured goods. According to the ....
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....ible on services even if the value thereof is not part of the value subjected to duty. This is because the interpretation of the expression "input services" cannot fluctuate with the change in the definition of "value" in Section 4 of the Central Excise Act and cannot vary depending on whether the goods are levied to duty under Section 4A of the Central Excise Act or tariff value under Section 3(2) of the Central Excise Act or the product attract specific rate of duty. In the case of Gujarat Ambuja Cements Ltd. v. Commissioner of Central Excise, Ludhiana [2007 (6) S.T.R. 249 (Tri.) = 2007 (212) E.L.T. 410 (Tri.)] relied upon by the Revenue, the Tribunal had relied on the decision of the apex court in Reserve Bank of India v. Peerless Co. [(....