Eligibility of cenvat credit on outward freight

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..... Eligibility of cenvat credit on outward freight
Query (Issue) Started By: - hitendra dave Dated:- 4-6-2009 Last Reply Date:- 4-6-2009 Service Tax
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Service Tax
Cenvat credit of service tax on out word freight eligble or not Reply By Pradeep Khatri: The Reply: The Larger Bench ('LB') in the case of 'India Cements Limited and Others' has held that services availed by a man .....

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..... ufacturer for 'outward transportation' of final products 'from the place of removal' should be treated as an 'Input Service' in terms of Rule 2(l)(ii) of Cenvat Credit Rules, 2004 ("Rules"). In the judgment, the LB has discussed at length the wide import of the words 'activities relating to business' and 'such as'. The LB also held that the definition of Input Service has to be interpreted in the .....

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..... light of the requirements of business and cannot be read restrictively so as to confine only up to the factory or up to the depot of the manufacturers. Reply By Pradeep Khatri: The Reply: Further,it is pertinent to note that the ‘means’ part of the definition of ‘input service’ was amended from April 1, 2008 to substitute the words ‘from the place of removal’ by the words ‘up to the place of remo .....

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..... val’. The LB decision seems to suggest that the credit of outward transportation also qualifies under ‘activities relating to business such as’ [the ‘includes’ part]. This creates a possibility of claiming credits on outward transportation for periods on or after April 1, 2008 under the ‘includes’ part.
Discussion Forum - Knowledge Sharing .....

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