2011 (6) TMI 690 - AT - Service Tax

Summary

Issues involved: Eligibility of Cenvat credit on services billed by high sea seller, disallowance of credit by original authority, reduction of penalty by Commissioner (Appeals), dispute regarding invoices/bills not in the name of present importer.

Eligibility of Cenvat credit: The applicant, an importer, purchased goods from a high sea seller, leading to a dispute over the eligibility of Cenvat credit on services billed by Container Agents and shipping lines. The original authority disallowed the credit, imposed penalty, and interest. The Commissioner (Appeals) upheld the decision but reduced the penalty. The advocate for the applicant argued that expenses were incurred for services related to imported goods, even though the bills did not bear the name of the present importer. The learned SDR supported the decision of the Commissioner (Appeals) based on the actual receiver of services being different from the applicant.

Invoices/bills not in the name of present importer: The dispute mainly revolved around invoices/bills being in the name of a party other than the present importer, who purchased goods on a high sea sale basis. The applicant had borne expenses for services related to the imported goods, and service tax was paid by the applicant. The Tribunal found that the services were in connection with the imported inputs utilized by the appellants. As a result, the Tribunal granted a waiver of pre-deposit of dues and stayed the recovery of the same until the appeal was disposed of.

Conclusion: The Tribunal, after considering submissions from both sides, found in favor of the applicant regarding the waiver of pre-deposit of dues as per the impugned order. The Tribunal acknowledged that the services were related to the imported goods and granted relief to the applicant by staying the recovery of dues until the appeal was finalized.