In Brief
UltraTech Cement claimed Cenvat Credit on service tax paid for transporting finished cement from its factory to customer premises. The Central Excise authorities rejected this claim, arguing that such outward transport beyond the factory gate is not an "input service" eligible for credit. After conflicting decisions in lower tribunals, the Supreme Court held that the amended Cenvat Credit Rules defining input service as covering transport "upto" (not "from") the place of removal restricts credit to the factory exit point only. Post-removal transport, being distinct from manufacture, cannot qualify as input service. The appeal was therefore allowed, restoring the original order denying the credit.
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