2013 (6) TMI 396 - AT - Central Excise

Cenvat Credit - Input services - service of C & F agent - post removal activity - Held that - Whether we consider the services as of C & F Agent or Commission agent, according to the decision of the Tribunal in the case of Lanco Industries Limited 2009 (7) TMI 125 - CESTAT, BANGALORE and Rotork Control (India) Pvt. Limited 2010 (6) TMI 336 - CESTAT, CHENNAI the credit of service tax is admissible. Since the issue is squarely covered by the precedent decisions of the Tribunal, the appeal is allowed with consequential relief to the appellant. - Decided in favor of assessee.

Summary

Issues: Cenvat credit of service tax availed by the appellant in 2007-08 held to be inadmissible.

The judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Mr. B.S.V. Murthy, pertained to the denial of Cenvat credit of service tax amounting to Rs. 2,52,210/- availed by the appellant in the year 2007-08. The denial led to the confirmation of the demand for the credit availed, along with interest and the imposition of a penalty equal to the credit amount. The appellant's counsel argued that the credit was disallowed on the basis that the service of the C & F agent occurred post the removal of goods, making it a post-removal activity and thus ineligible for credit. Additionally, it was contended that the amount in question was actually a commission for sale and not for availing the services of the C & F agent. The Tribunal, referring to previous decisions in cases like Lanco Industries Limited and Rotork Control (India) Pvt. Limited, held that irrespective of whether the services were considered those of a C & F Agent or a Commission agent, the credit of service tax was admissible. As the issue was decisively covered by precedent decisions of the Tribunal, the appeal was allowed, granting consequential relief to the appellant.

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