In Brief
The Supreme Court upheld the Customs, Excise & Service Tax Appellate Tribunal's decision allowing CENVAT credit on goods transport agency charges for transporting final products from the place of removal (factory) to depots or customer premises. The Court held that such transportation services qualify as input services under the CENVAT Credit Rules, 2004. The term 'from the place of removal' encompasses the first leg of transportation from the factory to the ultimate destination (depot or customer). A 2008 rule amendment substituting 'upto' for 'from' confirmed this interpretation. The Central Excise Department's appeals were dismissed as lacking merit.
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