2012 (7) TMI 826 - AT - Central Excise

Eligibility to CENVAT Credit - Custom House Agents and Clearing and Forwarding Agents - Nexus with manufacturing activity - Held that - credit of service tax paid by the Custom House Agents and Clearing and Forwarding Agents for the services rendered to the assessee is eligible for availment of cenvat credit - Following decision of Adani Pharmachem Pvt. Limited 2008 (7) TMI 102 - CESTAT AHMEDABAD and also the case of Rolex Rings Pvt. Limited 2008 (2) TMI 770 - CESTAT AHMEDABAD - Decided against Revenue.

Summary

Issues:
Eligibility of the respondent for cenvat credit of service tax paid by Custom House Agents and Clearing and Forwarding Agents for export of goods.

Analysis:
The appeal before the Appellate Tribunal CESTAT Ahmedabad involved a dispute over the eligibility of the respondent to avail the benefit of cenvat credit of service tax paid by Custom House Agents and Clearing and Forwarding Agents for services rendered in exporting goods. The Revenue challenged the first appellate authority's decision, arguing that the services provided were not directly related to the manufacturing activity of the appellant as they were away from the place of removal. The Tribunal noted that the first appellate authority had based its decision on precedents set by the Tribunal in previous cases, specifically citing the rulings in the cases of Adani Pharmachem Pvt. Limited and Rolex Rings Pvt. Limited. The Tribunal observed that it had consistently held that cenvat credit of service tax paid by such agents for services rendered to the assessee was eligible for availment of cenvat credit.

The Tribunal found that the first appellate authority had correctly applied the law established by previous decisions of the Tribunal, including those mentioned earlier. It concluded that there was no flaw in the order of the first appellate authority and upheld its decision. Therefore, the Tribunal held that the impugned order was legally sound and free from any defects, ultimately rejecting the appeal filed by the Revenue.

In summary, the Tribunal ruled in favor of the respondent, affirming their eligibility to claim cenvat credit for the service tax paid by Custom House Agents and Clearing and Forwarding Agents for services related to the export of goods. The decision was based on the consistent interpretation of the law by the Tribunal in previous cases, highlighting the importance of precedent in determining such matters.