The Gujarat High Court recently ruled that Outward Transport Service used by the manufactures for transportation of finished goods from the place of removal up to the premises of the purchaser is “input service”.
In instant case, Revenue is in appeal against the judgment of the Customs Excise and Service Tax Appellate Tribunal. The court endorsed the decision of Commissioner of C.Ex. & Customs vs. Parth Poly Wooven Pvt. Ltd wherein input services are observed as any service used by the manufacturer whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. This definition itself is wide in its expression and includes a large number of services used by the manufacturer.
Finally, the court noted that “outward transport service used by the manufactures for transportation of finished goods from the place of removal up to the premises of the purchaser is covered within the definition of “input service” provided in Rule 2(l) of the Cenvat Credit Rules, 2004.”