2013 (1) TMI 489 - AT - Service Tax

Refund of service tax paid on CHA services in respect of the exports - Clearing House Agent - AO argue that it includes services like demurrage charges - documentation charges - detention charges - which should not have formed part of the CHA service and, therefore, the appellant is not entitled for the credit - Held that - Following the decision in case of Anant Commodities (P.) Ltd.(2009 (10) TMI 229 - CESTAT, NEW DELHI) that CENVAT Credit cannot be denied to the receiver of duty-paid inputs by the Central Excise authorities having jurisdiction over the input receiver by revising the assessment of duty at supplier s end. In favour of assessee

Summary

Issues:
- Refund of service tax paid on CHA services for exports
- Dispute over CHA services including demurrage, documentation, and detention charges
- Jurisdiction of assessment and collection of tax at service provider's end

Refund of Service Tax on CHA Services for Exports:
The appeal filed by the Revenue challenged the Order-in-Appeal allowing refund of service tax paid on CHA services for exports. The lower appellate authority had granted the refund, prompting the Revenue's objection. The Revenue contended that certain charges like demurrage, documentation, and detention charges included in the CHA services should not be considered part of it, thus disputing the refund entitlement of the appellant.

Dispute Over CHA Services Charges:
The Revenue's primary argument revolved around disputing the assessment and collection of tax at the service provider's end, claiming lack of jurisdiction. The Revenue contended that the CHA services, which included various charges beyond the core service, were not eligible for tax credit. The absence of representation from the respondent further emphasized the Revenue's stance on the matter.

Jurisdiction of Assessment and Tax Collection:
The judgment referenced a settled legal position that CENVAT Credit cannot be denied to the receiver of duty-paid inputs based on revisions of duty assessment at the supplier's end by Central Excise authorities. The Tribunal cited a previous case to support this principle, emphasizing that jurisdiction over the input receiver should not be used to revise assessments at the supplier's end. Consequently, the Tribunal dismissed the Revenue's appeal, finding no merit in their arguments and upholding the lower appellate authority's decision to grant the refund.

This detailed analysis of the judgment highlights the core issues of refund entitlement, dispute over CHA services charges, and the jurisdictional aspects of tax assessment and collection, providing a comprehensive overview of the legal reasoning and outcome of the case.