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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..... X. 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 expression 'place of re moval' has not .....

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..... ent 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 duty on the basis of valuation under .....

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..... f whether or not the said section is applicable for the purposes of working out the duty on such goods. 4. In view of the above, the undersigned is directed to state that, in case of depot sales of goods, the credit of service tax paid on the transportation of goods up to such depot would be eligible, irrespective of the fact, whether the goods were chargebale to excise duty at specific rates or .....

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