2013 (7) TMI 832 - AT - Central Excise

Input Service - Appellant had availed CENVAT Credit of Service Tax paid by Clearing & Forwarding Agent services and Banking services rendered by the bank - Authorities held credit of Service Tax not to be granted to appellant since service not under definition of input service - Held that - Following decision of JSW STEEL LTD. Versus COMMISSIONER OF CENTRAL EXCISE, THANE-I 2012 (12) TMI 141 - CESTAT, MUMBAI and Commissioner of Central Excise, Surat Versus M/s Vishal Malleables Ltd. 2012 (11) TMI 871 - CESTAT AHMEDABAD - Decided in favour of assessee.

Summary

Issues:
Challenge to disallowance of CENVAT Credit on Service Tax paid for Clearing & Forwarding Agent services and Banking services.

Analysis:
The appellant exported goods and utilized Clearing & Forwarding Agent services along with banking services for recovery of consideration. Lower authorities disallowed CENVAT Credit on Service Tax paid for these services. The appellant contested, citing precedents like JSW Steel Ltd and Vishal Malleables Ltd, arguing that CENVAT Credit can be availed for such services in export transactions.

The Tribunal noted that the services were indeed utilized for goods exported by the appellant, which was not disputed by the Revenue. Referring to the decisions in JSW Steel Ltd and Vishal Malleables Ltd, the Tribunal held that the appellant was entitled to CENVAT Credit on Service Tax paid for both Clearing & Forwarding Agent services and banking commission charges in the export process.

Consequently, the Tribunal found the impugned order unsustainable and set it aside, allowing the appeals in favor of the appellant. The judgment highlights the importance of judicial precedents in determining the eligibility of CENVAT Credit on specific services in export transactions, providing clarity and relief to the appellant in this case.