2015 (9) TMI 216 - AT - Service Tax

Denial of refund claim - clearing and forwarding agent services - Revenue contends that that service tax paid on clearing and forwarding agent services are post clearance of the final products from factory and the ownership of the goods still vested in the assessee s hand; that the place of removal cannot be port where the services are received - Held that - larger bench in the case of Honest Biobet Pvt. Ltd. (2014 (11) TMI 579 - CESTAT AHMEDABAD) has held that load port is to be considered (as place of removal) under sec. 4(3)(c)(iii) of the Central Excise Act, 1944; accordingly it has to be held that any services received by an assessee at the port for export of goods has to be held as eligible for Cenvat credit under the provision of Cenvat Credit Rules, 2004. - Decided against Revenue.

Summary

Issues:
1. Disposal of appeals filed by the revenue and the assessee regarding refund claims on service tax paid on various services used for manufacturing final products for export.
2. Dispute over eligibility of CENVAT credit for services like catering, travel, car, and clearing and forwarding agent.
3. Application of the place of removal concept in determining CENVAT credit eligibility.
4. Comparison with a previous bench decision regarding the same appellant assessee's appeal.
5. Interpretation of the Central Excise Act and Cenvat Credit Rules in the context of service tax on clearing and forwarding agent services.

Analysis:
1. The judgment addresses the appeals filed by both the revenue and the assessee concerning the refund claims on service tax paid for services used in manufacturing final products for export. The first appellate authority's decision to reject and allow the refund claims is under dispute.

2. Regarding the eligibility of CENVAT credit for services such as catering, travel, car, and clearing and forwarding agent, the bench notes that a previous decision in a similar case favored the appellant assessee. This establishes a precedent for the current appeals.

3. The issue of the place of removal is crucial in determining CENVAT credit eligibility. The revenue argues that services by clearing and forwarding agents post-clearance do not qualify. However, citing a larger bench decision in Honest Biobet Pvt. Ltd., the judgment clarifies that services received at the load port for export are eligible for CENVAT credit under the Cenvat Credit Rules, 2004.

4. The judgment emphasizes consistency with the previous bench decision favoring the appellant assessee in similar service tax refund matters. This ensures uniformity in the application of legal principles to similar cases involving the same party.

5. By interpreting the provisions of the Central Excise Act and Cenvat Credit Rules, the judgment concludes that the revenue's appeals lack merit based on authoritative judicial pronouncements. Consequently, the assessee appellant's appeals are allowed, and the revenue's appeals are rejected, settling the dispute over service tax refund claims and CENVAT credit eligibility.