2013 (2) TMI 59 - AT - Central Excise

Cenvat credit of service tax paid on CHA Services and C & F Agent service - Held that - There is no dispute that the goods on which the services were rendered by the CHA and C & F Agents were in respect of the goods which were sought to be exported & also the services were received by the appellant for the export of the goods. Thus FAA was correct in coming to the conclusion that the appellant is eligible to avail cenvat credit on the service tax paid on CHA and C & F Agent services relying on Ultratech Cement Limited 2010 (10) TMI 13 - BOMBAY HIGH COURT would also cover the issue in favour of the respondent.

Summary

Issues: Interpretation of place of removal for cenvat credit on service tax paid on CHA and C & F Agent services after 31.03.2008

The judgment by the Appellate Tribunal CESTAT Ahmedabad addresses a dispute regarding the interpretation of the place of removal for availing cenvat credit on service tax paid on CHA and C & F Agent services post 31.03.2008. The Revenue filed an appeal against an order demanding service tax credit availed by the respondent, a manufacturer of storage tanks, for services rendered at the Port for export of goods. The Commissioner (Appeals) allowed the respondent's appeal based on the law laid down by the Hon'ble High Court of Mumbai in a previous case. The issue revolved around whether services rendered beyond the place of removal could be considered in or in relation to the business after an amendment to the definition of input service. The Revenue contended that such credit cannot be considered as business-related post the amendment.

The learned Additional Commissioner (A.R.) argued on behalf of the Revenue, emphasizing the interpretation of place of removal after the specified date. The respondent's counsel cited precedents where similar issues were considered, and the bench held that services rendered at the port for export purposes were considered part of the place of removal. The Tribunal noted that the services in question were for goods intended for export and were received by the appellant for export purposes. The Tribunal found that the first appellate authority was correct in allowing the cenvat credit on the service tax paid for CHA and C & F Agent services, consistent with previous decisions by the bench and supported by a judgment of the Hon'ble High Court of Bombay in a related case.

Consequently, the Tribunal upheld the impugned order, stating it was legally sound, in line with previous judicial pronouncements, and did not warrant any interference. The appeal by the Revenue was rejected, affirming the respondent's eligibility to avail cenvat credit on the service tax paid for the mentioned services.