2009 (2) TMI 116 - AT - Service Tax

whether the appellant is entitled to avail Cenvat credit of service tax paid on goods transport agency service received by them for bringing the empty containers in the factory premises as also the service tax paid on handling/agency charges in respect of services enjoyed at the port of export - held that the issue is covered by earlier decisions of tribunal and accepted by the SDR demand is set aside with consequential relief.

Summary

Issues involved:
Entitlement to Cenvat credit of service tax paid on goods transport agency service for bringing empty containers in factory premises and handling/agency charges at port of export.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Member (Judicial) Archana Wadhwa, addresses the issue of whether the appellant can avail Cenvat credit for service tax on goods transport agency service and handling/agency charges related to services at the port of export. The Tribunal referred to previous decisions to settle the matter. In the case of Commissioner of C. Ex., Rajkot Vs. Rolex Rings P. Ltd., it was established that services availed by exporters till the port area are considered input services related to business activities, making credit of duty paid on such services admissible to exporters. This decision was supported by a CBEC Circular. Another case referenced was Commissioner of C. Ex., Rajkot Vs. Adani Pharmachem P. Ltd., which clarified that Cenvat credit of service tax for Custom House Agent services rendered up to the place of removal, in this case, the load port, is eligible. The learned S.D.R. concurred that the issue aligns with the aforementioned Tribunal decisions. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief. The judgment highlights the importance of understanding the scope of input services and the eligibility for Cenvat credit in relation to services essential for business activities and export processes.