2009 (9) TMI 313 - AT - Service Tax

Cenvat Credit-Input Services- This appeal is against the order of the Commissioner (Appeals) by which, the order of the original authority denying Cenvat Credit on Input Services namely, goods transport services, Courier services and customs house agent services has been upheld. Held that- the appellant s claim that their export is on FOB basis and this fact is not clear from the records thus set aside the order of the lower authorities and remand the matter to the original authority for considering all the issues afreash.

Summary

Issues:
1. Denial of Cenvat credit on input services - goods transport services, courier services, and Customs House Agents Services.

Analysis:
The appeal challenges the Commissioner (Appeals) order upholding the denial of Cenvat credit on specific input services. The appellant contests the denial of credit for goods transport agency services related to the transportation of inputs, emphasizing that the evidence presented was not considered adequately. Similarly, the denial of credit for courier services, both on received and sent couriers, is disputed, highlighting a lack of proper appreciation of their claim. Regarding Customs House Agents (CHA) services, reliance is placed on Tribunal decisions establishing the place of removal for exports on FOB basis as the load port, urging a reconsideration based on this precedent.

The learned SDR suggests that if evidence is provided to distinguish services for inward transportation and courier, along with proof of service tax payment, a reconsideration could be warranted. However, the SDR supports the reasoning of the Commissioner (Appeals) concerning CHA services. After hearing both sides, the Technical Member notes that the eligibility of Cenvat credit for goods transport agency and courier services was not adequately addressed by the authorities, warranting a fresh consideration. Additionally, the issue of Cenvat credit for CHA services is to be revisited due to ambiguity regarding the nature of export basis.

Consequently, the Technical Member sets aside the lower authorities' order and remands the matter to the original authority for a comprehensive reevaluation of all issues, ensuring due consideration of the observations made. The appeal is allowed for remand on the specified terms, providing the appellant with a reasonable opportunity for a fresh hearing and decision on the Cenvat credit eligibility for the contested input services.