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TMI Blog2017 (1) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... The above appeal is filed by the Department against the order passed by Commissioner (Appeals) who allowed the CENVAT credit of service tax paid on outward freight. 2. Brief facts of the case are that the respondents are manufacturers of Tyres on basis of job work out of the raw materials supplied by CEAT Ltd., Mumbai. The finished goods are cleared to depots of M/s. CEAT Ltd., and for the purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not have been allowed. 3. On behalf of the Respondent, the Ld. Consultant Shri. Sumanth argued that the period involved is prior to 01.03.2008 when the definition of input services used the words and clearance of final products from the place of removal . He relied upon the judgment of the Larger Bench in the case of ABB Ltd., Vs. CCE & ST, Bangalore, reported in 2009 (15) S.T.R. 23 (Tri. LB), C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute being raised on the means clause (which refers to clearance from the place of removal), that transportation up to the place of removal is not available as credit. Transportation within a factory would be covered by the inclusive clause. However, where depot is a place of removal, freight from depot to customer s premises would be covered by the means clause by the expression service used d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer, although, the question of denial of credit does not arise if the cost of freight is included in the transaction value. However this stand is not tenable. In other words, credit is not to be automatically disallowed in those cases where the freight cost does not form part of the transaction value. In the case of All India Federation of Tax Practitioners v. Union of India [2007 (7) S.T.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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