Solutions for,

How to remove CBS.log file?
CBS.log file is taking huge disk space.
C drive is full because of CBS file.
How to delete CBS.Log file?

CBS log files are located at C:\Windows\Logs\CBS

To remove the log files follow the below steps,

Run Command prompt with Administrative Rights,

Go to Start > All Programs > Accessories
Right Click on "Command Prompt"
Click on "Run As Administrator

Run following commands

net stop TrustedInstaller

del /f %windir%\logs\cbs\*.log

net start TrustedInstaller

The above commands will delete the CBS Log files and will free the space.
Once you start the TrustedInstaller service it will recreate the file with 0 utilized space.