2016 (1) TMI 561 - AT - Central Excise

Cenvat credit - input services - CHA services, Courier Services and C & F services. - export of goods and sale of goods through depot - credit upto the place of removal - Held that - in a recent Board s circular No.999/6/2015-CX dt. 28.2.2015 clarified that in the case of export, place of removal is the port and also categorically clarified that eligibility of cenvat credit shall be determined accordingly. Therefore, the appellants are eligible for input service credit on CHA & Courier services availed on export of final products. As regards denial of credit on C&F Agents services - Held that - appellants are manufacturer of specified goods and have paid excise duty on the price at which the goods are sold through their depots and C&F agents. As per Section 4 (3) (c) (ii), the place of removal includes depot as well as premises of consignment agents . By virtue of statutory provisions under Section 4, appellants are eligible for C&F Agents services and availed input credit on the commission paid to C&F agents. Appellants are eligible for cenvat credit on the input services viz. CHA services, Courier Services and the C&F Agents services. The demand is liable to be set aside. Since the demands are set aside, the question of imposing penalty does not arise. - Decided in favor of assessee.

Summary

Issues involved:
Denial of cenvat credit on input services - CHA services, Courier Services, and C & F services.

Analysis:

1. Denial of Cenvat Credit on CHA and Courier Services:
The appeals arose from the denial of cenvat credit on CHA services, Courier services, and C & F Agents services. The Commissioner (Appeals) upheld the denial of credit, leading to the appeals before the Tribunal. The appellant argued that the issue regarding CHA and courier services was settled by the Hon'ble Gujarat High Court and a Board's circular. They cited relevant case laws to support their contention. The Tribunal noted that the Hon'ble Gujarat High Court had held that the place of removal for exports is the port, not the factory gate. Additionally, a Board's circular clarified that the place of removal for exports is indeed the port. Consequently, the Tribunal held that the appellants were eligible for input service credit on CHA and Courier services for export of final products.

2. Denial of Cenvat Credit on C & F Agents Services:
Regarding the denial of credit on C & F Agents services, the appellant argued that they were eligible for cenvat credit as per Section 4 (3) (c) (ii) of the Central Excise Act. They contended that the definition of "place of removal" includes depots and consignment agents, and since they had appointed Clearing and Forwarding Agents who were registered with Central Excise Act and paid service tax, they were entitled to cenvat credit. The Tribunal noted the statutory provisions under Section 4 and the decision of the Tribunal's Larger Bench in a relevant case. By following the decisions of the Hon'ble Gujarat High Court, the Tribunal, and the Board's circular, the Tribunal held that the appellants were eligible for cenvat credit on C & F Agents services. Consequently, the demand was set aside, and the appeals were allowed, with no penalty imposed due to the demands being set aside.

In conclusion, the Tribunal allowed the appeals, setting aside the impugned orders and holding that the appellants were eligible for cenvat credit on the input services in question - CHA services, Courier Services, and C & F Agents services. The decision was based on the interpretation of relevant legal provisions, case laws, and a Board's circular clarifying the place of removal for exports.