I want know that whether the Cenvat Credit can be availed on the service tax paid on freight outwards . In our case The outward freight does not form part of assessable value for Central Excise Duty. The decesion given by 3 bench tribunal in case of ABB ltd 2009 has been stayed. Can the credit be taken on the basis of the decesion rendered by BOMBAY High Court in case of COCA COLA india ltd 2009 be taken as basis. What is the right approach to go ahead as the amount involved is in crores
06 July 2010
The service tax paid on outward freight cannot be considered since the act clearly says that input service tax can be availed upto the stage of manufacture.
The tribunal decission has been stayed only for the purpose of collection of tax from that assesee which is a procedural aspect of the court rulings. But the same will not be decission.
Therefore please consider act and not the stay order for finalising your accounts.
06 July 2010
The service tax paid on outward freight cannot be considered since the act clearly says that input service tax can be availed upto the stage of manufacture.
The tribunal decission has been stayed only for the purpose of collection of tax from that assesee which is a procedural aspect of the court rulings. But the same will not be decission.
Therefore please consider act and not the stay order for finalising your accounts.
Thanks for your reply. But in our case the freight outward is borne by our company only in such a situation it is clear that it is not passed on to the buyer..and there are some cases where the decision is in favour of assessee like coca cola india ltd. Ambuja Cement 2009. So can we take credit on the merit of those cases also quoting that it is as per the inclusive part of the definition of input service.
CAclubindia
