2007 (9) TMI 253 - AT - Service Tax

Availability of Cenvat credit on CHA & C/F services availed for export - appellant submition that in respect of exports the place of removal should be treated as port from which the goods are shipped and the factory gate, is not acceptable - CHA services availed in respect of export does not have any nexus with the manufacture and clearance of the product from the factory - services rendered at the port area are not covered as input service credit not allowable

Summary

Issues:
Availability of Cenvat credit on CHA services for export; Whether the services rendered at the port can be considered as input services for claiming credit.

Analysis:
The appeal in this case was against the order of the Commissioner (Appeals) denying the credit of service tax amounting to Rs. 68,829, as the services rendered at the port in connection with export were not considered as input services. The appellant argued that the place of removal for exports should be treated as the port from which the goods are shipped and the factory gate, relying on a Tribunal decision in another case. The issue of availability of Cenvat credit on CHA services for export has been addressed in various cases, as pointed out by the SDR.

The authorized representative of the appellant requested a reference to the Larger Bench due to conflicting decisions on the same issue. However, the Member (T) carefully considered the submissions from both sides and distinguished the case cited by the appellant, stating that it involved remission on excisable goods destroyed in a fire, not services claimed as credit. The Member (T) referenced the Tribunal decision in another case, stating that CHA services for export lack nexus with the manufacture and clearance of products from the factory, and services rendered at the port area cannot be included as input services.

In conclusion, the appeal was rejected based on the Tribunal's decision that CHA services for export do not qualify as input services for claiming credit, as they do not have a direct connection with the manufacturing process or clearance of goods from the factory. The judgment emphasized that services rendered at the port area cannot be considered as falling within the scope of input services for tax credit purposes.