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2016 (12) TMI 904 - AT - Central ExciseCENVAT credit - Outward transportation - tax discharged in connection with activity beyond the place of removal - Held that: - The quantum of credit available is linked to the ingredients that constitute the value for tax liability. This is amply clear from the special treatment accorded to output goods and services that are exempt and goods or services that are exported. Appellant has admitted that freight on outward transportation was not included in the assessable value of goods on which the duty liability is discharged by recourse to CENVAT credit. If the contention of appellant that the value of the service claimed to be an ‘input service’ is not to be included in the assessable value of output goods is accepted, the appellant would end up availing undue privilege of credit balance by paying tax lower than that envisaged by the sovereign legislature. It would also constitute retention of the tax recovered from customer which is not the intent of the CENVAT Credit Rules. Relying on the decision of the Tribunal in Maharashtra Scooters Ltd v. Commissioner of Central Excise, Pune -II [2015 (9) TMI 1161 - CESTAT MUMBAI], that tax paid on outward freight is not available for offset of the duty liability on output goods, the appeal is rejected - decided against appellant.
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