2011 (9) TMI 144 - AT - Service Tax

Services of Custom House Agent (CHA) - export of goods - the issue regarding availability of the cenvat credit on services rendered by the CHA in respect of the goods being exported to the foreign countries has already been decided by this tribunal vide order reported in (2010 -TMI - 203871 - CESTAT MUMBAI ). It is also noticed that the lower authorities are now started giving the benefit to the appellants as shown by the Orders-in-Original submitted by the ld.counsel during the course of hearing. - Benefit of Cenvat Credit allowed to assessee.

Summary

Issues: Availability of cenvat credit on services rendered by Customs House Agents (CHA) for export of goods.

In the case before the Appellate Tribunal CESTAT, Mumbai, the appellants, engaged in manufacturing safety razor blades and shaving systems, were availing cenvat credit for service charges paid to CHA for clearing and forwarding services for export. The Department issued a show-cause notice for recovery of cenvat credit, interest, and penalty, contending that CHA services were not used in or in relation to the manufacture of final products. The Assistant Commissioner confirmed the notice, imposing a penalty. The Commissioner (Appeals) also rejected the appeal. The appellants argued that a previous tribunal order allowed cenvat credit for CHA services in their own case, supported by Orders-in-Original. The Revenue reiterated the lower authorities' findings.

The tribunal, after considering both sides, noted that a previous order had already decided on the availability of cenvat credit for CHA services in a similar case. The tribunal observed that the lower authorities had started granting the benefit to the appellants, as evidenced by the Orders-in-Original presented during the hearing. Consequently, the tribunal upheld that the cenvat credit for services rendered by CHA is admissible to the appellants. Therefore, the appeal was allowed, and the decision was pronounced in court by Mr. Sahab Singh.