In Brief
The Commissioner of Customs challenged the allowance of Cenvat Credit claimed by Andhra Sugars Ltd on service tax paid for outward transportation of goods to customers. The Supreme Court held that outward transportation from the factory (the place of removal) to a warehouse or customer's place qualifies as an input service eligible for Cenvat Credit under Rule 2(l) of the Cenvat Credit Rules, 2004, provided the conditions regarding ownership transfer, risk, and freight charges are satisfied. The Court affirmed that the definition of 'input service' must be read to give full effect to outbound transportation from the place of removal. The appeals were dismissed.
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