2012 (6) TMI 486 - AT - Service Tax

Cenvat credit on services rendered by the CHA Input credit - Held that - cenvat credit in respect of services rendered by CHA is admissible to the appellants.

Summary

Issues: Availability of cenvat credit on services rendered by Customs House Agents (CHA) for export of goods.

Analysis:
1. The appeal was filed against an order by the Commissioner of Central Excise (Appeals), Mumbai, regarding the availability of cenvat credit on services provided by CHA for export of goods.
2. The appellants, engaged in manufacturing safety razor blades, paid service charges to CHA for clearing and forwarding services. The department issued a show-cause notice for recovery of cenvat credit, interest, and penalty, contending that the services by CHA were not used in relation to manufacturing final products.
3. The appellants argued that a previous tribunal order had allowed cenvat credit on CHA services in a similar case. They presented copies of Orders-in-Original supporting their claim.
4. The Revenue representative supported the lower authorities' findings against the appellants.
5. The presiding judge noted that a previous tribunal order had already decided in favor of allowing cenvat credit on CHA services. Additionally, lower authorities had started granting this benefit to the appellants, as evidenced by the Orders-in-Original submitted during the hearing.
6. Based on the previous tribunal order and the recent benefit granted by lower authorities, the judge held that cenvat credit on services by CHA for export goods is admissible to the appellants.
7. Consequently, the appeal was allowed in favor of the appellants.

This comprehensive analysis of the judgment highlights the key issues, arguments presented by both parties, and the reasoning behind the decision to allow cenvat credit on services provided by Customs House Agents for the export of goods.