02 May 2013
yes allowed as per the definition of input service when used for providing output service or manufacture of final product. 2(l) of Cenvat Credit Rules.. but only the transportation of 'input' and 'capital goods' is allowed, so it has to be checked what is transported. for input check 2(a) for capital goods check 2(l) of cenvat credit rules
03 May 2013
even if paid on reverse charge method, it can be taken on the basis of GAR - 7 challan, but u must be eligible to take credit, as per my above post.