2012 (7) TMI 828 - AT - Central Excise

CENVAT Credit - Service tax paid by the Custom House Agents and Clearing and Forwarding Agents - 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 decisions of Adani Pharmachem Pvt. Limited - 2008 (7) TMI 102 - CESTAT AHMEDABAD and also in the case of Rolex Rings Pvt. Limited - 2008 (2) TMI 770 - CESTAT AHMEDABAD - Decided against Revenue.

Summary

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

Analysis:
The appeal was filed by the Revenue against the Order-in-Appeal (OIA) dated 25.11.2010. The main issue was the eligibility of the respondent to claim cenvat credit for service tax paid by Custom House Agents and Clearing and Forwarding Agents for services related to the export of goods. The first appellate authority allowed the cenvat credit, but the Revenue contested this decision, arguing that the services were not directly linked to the manufacturing activity and were away from the place of removal.

Upon review, the Tribunal found that the first appellate authority had based its decision on precedents set by the Tribunal in earlier cases, specifically citing the cases of Adani Pharmachem Pvt. Limited and Rolex Rings Pvt. Limited. The Tribunal noted that it had consistently held that cenvat credit for service tax paid by Custom House Agents and Clearing and Forwarding Agents for services to the assessee was eligible. Consequently, the Tribunal upheld the decision of the first appellate authority, stating that it was in line with established legal principles.

In conclusion, the Tribunal affirmed that the impugned order was legally sound and did not contain any flaws. The appeal by the Revenue was rejected, and the decision was pronounced in court.