Outbound transportation from place of removal gets covered by definition of “input service”: CESTAT

The present appeal is the second round of litigation. The issue involved is the admissibility of Cenvat credit on the service tax paid on outward goods transportation up to the premises of the buyer. On an appeal, CESTAT remanded the matter back to the original authority for reconsideration.  The Hon’ble Madras High Court remanded the matter to CESTAT.

The Tribunal held that the issue is no longer res integra. It was found that the definition of “input service” under Rule 2 (l) of Cenvat Credit Rules, 2004 is quite comprehensive and encompasses every activity/service used in the provision of output services. In the case of CC, CE & ST Guntur Vs Andhra Sugars Ltd. 2018 (10) G.S.T.L 12 (SC) held that outbound transportation from the place of removal gets covered by the definition of “input service”.

Therefore, the tribunal found that the impugned order was liable to be set aside and an appeal was allowed with consequential relief, as per law.