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2012 (8) TMI 167 - AT - Service TaxAllowance of refund claim of input services - GTA services,transit insurance on outward freight and CHA services - department agitating allowance - Held that - GTA services for the period prior to 01.04.2008, till the place of delivery should be treated as input services as decided in the case of Commissioner of C. Ex. & S.T., LTU, Bangalore Vs. ABB Ltd 2011 (3) TMI 248 (HC) CHA services - considering the case of CCE, Rajkot Vs. Rolex Rings Pvt. Ltd. 2008 (2) TMI 295 (Tri) in respect of exported goods when the ownership rests with the exporter till delivery of the goods at the port, the place of removal should be treated as the port and therefore, the CHA services should be treated as input services in the light of inclusive definition of input services . Transit insurance charges - As it is directly linked to GTA services, thus eligible for credit up to 31.03.2008 - Somaiya Organo Chemicals Versus CCE, Aurangabad 2010 (9) TMI 316 (Tri) - in favour of assessee.
Issues:
Refund of credit on "input/input services" used in the manufacture of final products exempted under Notification 5/2006 CE (NT) 14.03.2006; Dispute over allowance of credit for outward GTA services, CHA services, and transit insurance; Interpretation of "input services" in relation to GTA services, CHA services, and transit insurance; Application of relevant legal precedents to support the claims. Analysis: The case involved an appeal by the department against the order of the Commissioner (Appeals) regarding the refund of credit on "input/input services" used in the manufacturing process of final products exempted under Notification 5/2006 CE (NT) 14.03.2006. The respondent, a 100% EOU manufacturing gherkins, had claimed the refund, which was partially sanctioned by the original authority but disputed by the department on grounds of being time-barred and specific services related to outward GTA, transit insurance, and CHA services involved in exports. The appeal memorandum did not specify the disputed amounts, but it was clarified that the department contested the allowance of credit amounting to Rs. 61,752/- on outward GTA, Rs. 2,23,899/- on CHA services, and Rs. 9,832/- on transit insurance. The respondent argued that GTA services till the place of delivery should be considered "input services" based on a High Court decision, and CHA services should also qualify as "input services" as per relevant legal precedents, including a Tribunal decision. Additionally, the respondent linked transit insurance charges to GTA services and cited a Tribunal decision to support the claim. The learned SDR reiterated the findings of the original order, while the respondent's advocate relied on legal precedents to support their arguments. The Tribunal noted that the facts of the case aligned with the decisions cited by the respondent and concluded that there were no valid grounds to interfere with the order of the Commissioner (Appeals). Consequently, the appeal by the department was rejected, and the decision was pronounced and dictated in open court. In summary, the judgment revolved around the interpretation of "input services" in the context of GTA services, CHA services, and transit insurance for a 100% EOU manufacturing unit. Legal precedents played a crucial role in supporting the respondent's claims, leading to the rejection of the department's appeal by the Tribunal.
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