2013 (2) TMI 561 - AT - Service Tax

Cenvat credit of service tax paid on the CHA services denied - Held that - The issue is no more res-integra as stand settled in the case of Meghachem Industries (2011 (4) TMI 221 - CESTAT, AHMEDABAD) and MTR Foods Limited (2011 (1) TMI 143 - CESTAT, BANGALORE) held that service tax paid by the CHA for the export of goods is eligible to be availed as cenvat credit by the assessee - in favour of assessee.

Summary

Issues involved:
Denial of cenvat credit for service tax paid on CHA services related to export of goods.

Analysis:
The judgment by Appellate Tribunal CESTAT Ahmedabad addressed the issue of denial of cenvat credit to the appellant for the period April 2005 to December 2009 for improperly availing the cenvat credit of service tax paid on CHA services provided in relation to the export of goods. The lower authorities contended that these services did not qualify as input services under Rule 2(l) of the Cenvat Credit Rules, 2004, as they were provided after the goods were cleared from the factory gate.

The presiding judge noted that the issue had been previously considered by the Tribunal in cases such as Meghachem Industries and MTR Foods Limited. In those cases, it was established that service tax paid by the CHA for the export of goods is indeed eligible to be availed as cenvat credit by the assessee. Consequently, the judge found that the issue had been settled in favor of the assessee based on the precedents and legal interpretations provided in the aforementioned cases.

Therefore, the judge concluded that the impugned orders denying the cenvat credit to the appellant were not sustainable in light of the established legal position. Consequently, the judge allowed the appeals and set aside the impugned orders, ruling in favor of the appellant. The judgment provided a clear and decisive resolution to the issue at hand, ensuring that the appellant was entitled to avail the cenvat credit for the service tax paid on CHA services related to the export of goods.