2014 (6) TMI 30 - AT - Service Tax

CENVAT Credit - Availment of facility of warehousing export goods in the USA prior to distribution of the same to the ultimate buyers. - Held that - Since the warehouses were hired in the USA beyond the jurisdiction of the Indian authorities, no Service Tax can be levied and collected on such services rendered and received abroad. Since tax was not, in the first instance, payable and the appellants merely have taken credit of what was not payable by them, the impugned demand cannot be justified. For the same reason, there is no justification for imposition of penalty and recovery of the interest amount. As such, the impugned order is set aside - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT CHENNAI allowed the appeal in a case involving warehousing charges paid on export goods in the USA. The tribunal held that since the warehouses were outside Indian jurisdiction, no Service Tax could be levied. Therefore, the denial of credit and imposition of penalty were unjustified. The appeal was allowed, setting aside the impugned order.