2012 (4) TMI 407 - AT - Service Tax

Eligibility of the respondent for refund under Notification No.41/2007-ST, dt.06.10.2007 - Commissioner (Appeals) has allowed the refund claim in respect of Service Tax paid on Port services, Terminal Handling Charges, CHA services, GTA services, Wharfage charges Held that - The services such as Stevedoring, transporting the cargo after unloading from the vessel, are covered under the Port service - once the Service Tax was paid under the category of Port service, at the end of the receiver of the service the eligibility for the credit cannot be questioned - the decisions in the case of Western Agencies Pvt.Ltd. Vs CCE Chennai (2011 - TMI - 206087 - CESTAT, CHENNAI - LB), covers the services in respect of which the refunds have been claimed by the respondents - as regards CHA service and GTA service it is clear that the respondents are eligible for CENVAT Credit upto the place of removal and in the case of export on FOB basis, the place of removal has to be taken as Port against revenue.

Summary

Issues: Eligibility for refund under Notification No.41/2007-ST for various services.

In this judgment by the Appellate Tribunal CESTAT, Ahmedabad, the issue at hand is the eligibility of the respondent for a refund under Notification No.41/2007-ST, as amended by various notifications. The appeals filed by the Revenue concern different refund claims for services like Port services, Terminal Handling Charges, CHA services, GTA services, and Wharfage charges. The Commissioner (Appeals) had allowed the refund claim of the appellant for these services. The Tribunal analyzed the nature of services like wharfage charges, considering them as part of Port services based on precedents like the case of Western Agencies Pvt. Ltd. Vs CCE Chennai. The Tribunal also discussed the eligibility for CENVAT Credit for CHA service and GTA service, emphasizing that the respondents are entitled to credit up to the place of removal, especially in cases of export on FOB basis where the place of removal is deemed to be the Port.

The Tribunal referred to the decisions in the cases of Western Agencies and Ramdev Food Products Ltd., which covered the services for which refunds were claimed by the respondents. It was noted that services such as Terminal Handling charges, Repo/Bill of Lading charges, DDC, and Hauling charges are considered part of Port service. The Tribunal highlighted that once Service Tax is paid under the category of Port service, the eligibility for credit cannot be questioned at the receiver's end. The Tribunal upheld the Commissioner (Appeals)'s decision on the eligibility of the respondent for the refund under Notification No.41/2007-ST. Ultimately, the Tribunal found no merit in the appeal filed by the Revenue and upheld the impugned order, rejecting the appeal filed by the Revenue.