2009 (7) TMI 83 - AT - Service Tax

Cenvat Credit - CHA and surveyors Service Input Service GTA , CHA and Surveyors services are utilized at the time of export of the goods - place of removal in case of exported goods is the port area. - the Board s Circular No. 97/8/2007-ST dt. 23/8/2007 The decision in the matter of M/s. Excel Crop Care Ltd. not applicable since as neither definition of input service was considered nor the Board s circular referred in the preceding paragraph was taken into consideration Cenvat credit allowed.

Summary

Issues:
- Alleged wrongful credit of service tax including Education Cess on services of Customs House Agent for export consignments
- Confirmation of tax demand without penalty imposition
- Appeals filed before Commissioner (Appeals) by both appellants and Revenue
- Tribunal's decision in favor of the appellants based on previous cases
- Interpretation of ownership of goods till port area for availing input service credit
- Disagreement with Revenue's reliance on a different Tribunal judgment

Analysis:
The judgment addresses the issue of alleged wrongful credit of service tax, including Education Cess, on services provided by a Customs House Agent for export consignments. A show cause notice was issued, leading to the confirmation of the tax demand without imposing a penalty. Subsequently, appeals were filed by both the appellants and the Revenue before the Commissioner (Appeals). The Tribunal considered the common issue in both appeals and decided in favor of the appellants based on previous cases such as CCE vs. Rolex Rings, Kuntal Granites Ltd. vs. CCE, and CCE vs. Adani Pharma Chem P. Ltd. The Tribunal also relied on the decision of the Larger Bench in ABB Ltd. vs. CCE & ST. The Tribunal emphasized the ownership of goods until the port area for availing input service credit, as supported by relevant circulars and interpretations. The judgment disagreed with Revenue's reliance on a different Tribunal judgment regarding the nexus of Customs House Agent services with manufacturing and clearance, as the definition of input service and relevant circulars were not considered in that case. Consequently, the denial of credit of service tax on Customs House Agent services and the imposition of penalty were deemed unsustainable, leading to the setting aside of the impugned orders and allowing both appeals filed by the appellants with consequential relief.