Outbound transportation from place of removal gets covered by definition of input service

Commissioner Of Customs Central Excise And Service Tax Vs. M/s. Andhra Sugars Ltd. (Supreme Court of India)

The question, therefore, which needs determination is as to whether the expression ‘input service’ as defined in Rule 2(l) of the Cenvat Credit Rules, 2004 (hereinafter referred to as the ‘Rules, 2004’), in the context of a service provider, would also include services which are used in or in relation to providing taxation output services described in the definition and the outward transportation to the purchaser would be treated as beyond the ‘place of removal’.

Held by Honourable Supreme Court

Once it is accepted that place of removal is the factory premises of the assessee, outward transportation ‘from the said place’ would clearly amount to input service. That place can be warehouse of the manufacturer or it can be customer’s place if from the place of removal the goods are directly dispatched to the place of the customer. One such outbound transportation from the place of removal gets covered by the definition of input service.

FULL TEXT OF THE SUPREME COURT JUDGMENT / ORDER IS AS FOLLOWS:-

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