Any one can send me circullar,judgement or notification in favour of availing service tax on out ward freight which deposited by the manufacturer company ?
soni chauhan (Service) (670 Points)
13 November 2009Any one can send me circullar,judgement or notification in favour of availing service tax on out ward freight which deposited by the manufacturer company ?
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 13 November 2009
Please be informed that, the definition of "input service" under Rule 2 (l) has been amended in respect of clearance of final products "upto the place of removal" (which was hitherto "from the place of removal") and this is substituted in the Cenvat Credit Rules, 2004, with effect from 1st April, 2008, vide Excise Notification No.10/2008 - CE (N.T) dated 01.03.2008. In view of the aforesaid Amendment, it appears that, the credit of service tax paid on 'outward transportation' has been restricted "upto the place of removal"., i.e, upto the Factory Gate or in the case of 'Stock Transfer'upto Depot / Dump / C& F Agents premises.
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 13 November 2009
Sameer
(.)
(252 Points)
Replied 13 November 2009
Soni,
Follwoing are the recent judgement allowing cenvat credit of outward freight.
You can find the same free of cost in www.judis.nic.in
Ambuja Cements Ltd Vs UoI (Dated: February 10, 2009) - Punjab & Haryana HC
Abb Ltd. V. CCe (2009) 21 STT 77 = 15STR23 (CESTAT)
Coca Cola Inida V CCE (2009) 22 STT 130 (Bom HC) Division Bench.
Regards
Sameer
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 14 November 2009
Service Tax Credit on outward freight |
|
Court : Punjab & Haryana High Court Brief : : ST - Cenvat Credit on Outward Freight - Revenue disallows -held, Assessee is eligible for Credit: High Court Citation : Ambuja Cements Ltd Vs UoI (Dated: February 10, 2009) Judgment : ST - Cenvat Credit on Outward Freight - Revenue disallows -held, Assessee is eligible for Credit: High Court |
Chirag Patel
(Officer)
(28 Points)
Replied 16 November 2009
i am workfing with one auttomobile company
we are clear the goods from factory.for the benefit of rule 4 of the valuation rule we shaw freight after excise duty.and transist insurance after transportation. can we take the credit of that outward transportation up to place of dealer
A learner
(Corporate Accounts )
(345 Points)
Replied 15 January 2010
Credit can be availed on outward transportation as reinforced by cestat banglore...taking HC ( PUN. & Haryana court) decision as base.
Please comment if you have a different opinion. File Uploaded here for your reference.....sOME RELEVANT extracts are:
Govind Sharan FCA
(Consultant)
(48 Points)
Replied 20 May 2010
In present scenario after the amendment, cenvat will not be available. Ourward freight upto the place of removal will supersede activity related to business.
Govind Agarwal, Chartered Accountants
9899106682
Govind Sharan FCA
(Consultant)
(48 Points)
Replied 20 May 2010
In present scenario after the amendment, cenvat will not be available. Ourward freight upto the place of removal will supersede activity related to business.
Govind Agarwal, Chartered Accountants
9899106682
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 21 May 2010
Dear Sir,
The credit of outward GTA presently has been stayed by the Karnataka HC in the case of ABB Ltd. Till the same is resolved the matter is doubtful. In the meantime it maybe advisable to avail the credit but not to utilise the same and intimate the dept of the same. Reason that not availed due to doubt. Alternatively keep the same in memorandum account and intimate dept that once decision comes the credit for the past period wouldbe availed.
Chirag Patel
(Officer)
(28 Points)
Replied 23 May 2010
I have one quary that the Owwnership of the goods is lying to up to door of the purchaser. if we charge the transist insurance then owner ship is up to factory gate or door of purchaser
bhaskar
(Assistant Manger )
(21 Points)
Replied 27 November 2013
R.B.POPAT
(PRACTICING C.A.)
(55 Points)
Replied 08 September 2014
Cenvat credit of Service Tax - Input service - Services availed by manufacturer for outward transportation of final products from the place of removal - Entitlement of manufacturer to take credit of the Service Tax paid on the value of such service - Service Tax and Excise duty being consumption taxes to be borne by the consumer, if credit is denied on transportation service, the levy of Service Tax on transportation will become a tax on business rather than being a consumption tax - Considering the fundamental concept of Service Tax, it cannot be said that Cenvat credit cannot be allowed for service if the value thereof does not form part of the value subjected to Excise duty - Order of Tribunal holding the manufacturer to be entitled to take credit of the Service Tax on the value of transportation service, proper - Rule 2(l)(ii) of Cenvat Credit Rules, 2004 - Section 35G of Central Excise Act, 1944 as applicable to Service Tax vide Section 83 of Finance Act, 1994. [para 5] 2014 (34) S.T.R. 809 (A.P.)
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)