Outward Freight Credit Cannot Be Denied When Supplier Bears Freight and Insurance Costs: CESTAT Kolkata

Star Battery Ltd. Vs Commissioner of Central Tax (CESTAT Kolkata) In this case, the appellant, a manufacturer of batteries, supplied its products to BSNL and availed Cenvat credit of Service Tax paid on outward freight charges. A Show Cause Notice dated 01.02.2010 was issued for the period from April 2005 to December 2009 on the ground that the appellant was not entitled to claim Cenvat credit on Service Tax paid for outward transportation. The appellant contended that it was eligible for such credit under Rule 2(l) of the Cenvat Credit Rules, 2004. It argued that prior to 01.04.2008, the rule...