Service tax Credit on freight Outward

Should I take the serivce tax credit on Freight Outward. If yes the please send me a notification

Replies (2)

Tribunal, in the matter of GUJARAT AMBUJA CEMENTS LTD. v/s. COMMISSIONER OF C. EX. LUDHIANA  has held that Cenvat credit of service tax paid on transportation beyond the place of removal is not available.

Now the Banglore Bench has taken a different view that , The place of removal can be either factory or depot, so it is very clear that Rule 2(1) (ii) covers the services which is in dispute. When the place of removal is factory the service tax paid on the goods transport services availed by the manufacturer from the factory up to the destination of the buyer is definitely included.

It advisable that availed the GTA credit up to the depot and further credit from the factory to destination of the buyer, will remain in the Service tax credit register but don't utilize, until the final judgement will not come.

 

 

Originally posted by :Guest
"

Tribunal, in the matter of GUJARAT AMBUJA CEMENTS LTD. v/s. COMMISSIONER OF C. EX. LUDHIANA  has held that Cenvat credit of service tax paid on transportation beyond the place of removal is not available.
Now the Banglore Bench has taken a different view that , The place of removal can be either factory or depot, so it is very clear that Rule 2(1) (ii) covers the services which is in dispute. When the place of removal is factory the service tax paid on the goods transport services availed by the manufacturer from the factory up to the destination of the buyer is definitely included.
It advisable that availed the GTA credit up to the depot and further credit from the factory to destination of the buyer, will remain in the Service tax credit register but don't utilize, until the final judgement will not come.
 

 Beaware ! Availment of inelligible credit in itself can invite penalty whether utilised or not.
 

"

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