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2016 (11) TMI 1178 - AT - Central ExciseCENVAT credit - outward transportation of spare parts - whether the denial of CENVAT credit on the ground that the services of outward transportation does not qualify as an input service in terms of Rule 2(l)(ii) of CCR, 2004 as the same is not used directly or indirectly in or in relation to the manufacture of final products, justified? - Held that: - Cenvat credit on outward transportation has been rightly availed by the appellants in terms of Board s Circular No. 97/8/2007-S.T. dated 23.8.2007, once the conditions in the aforesaid Circular are satisfied, credit on outward transportation is to be allowed - reliance placed on the decision of the case of Commissioner of C.Ex., Rohtak vs. Haryana Sheet Glass Ltd. [2013 (10) TMI 1163 - PUNJAB & HARYANA HIGH COURT] where it was held that in view of Circular No. 97/6/2007-ST, dated 23-8-2007, credit is admissible if ownership of goods remain with seller till delivery of goods at customer’s doorstep – since sales is based on basis of “FOR destination”, transit insurance and freight charges are borne by appellant, so credit is admissible on outward freight. CENVAT credit allowed - appeal allowed - decided in favor of appellant.
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