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2017 (10) TMI 740 - AT - Central ExciseCENVAT credit - input services - Air Ticketing charges - Hire charges for the cabs - Export Agency Charges against fees/commission for exports - Installation charges - Outward Transportation of goods - Held that - The Tribunal in the same assessee s case 2016 (9) TMI 538 - CESTAT CHENNAI has dealt with the issue of Cenvat credit of service tax paid on Commissioning and Installation Services, Air Travel Services and Rent-a-Cab Services which has been allowed in favour of the appellant - credit allowed. Export Agency Charges - Held that - Export agency charges had been incurred for the exports made by them - Reliance is placed on the decision of the Hon ble High Court of Gujarat in the case of Commissioner Vs. Dynamic Industries 2014 (8) TMI 713 - GUJARAT HIGH COURT , wherein it was held that when impugned services were utilized for purpose of export of final products and exporters could not do business without them Service Tax paid on these services availed till goods reached port, was admissible - credit allowed. Outward transportation service - Held that - the period of dispute involved in the present appeal is from 2006 to 2008. During the disputed period in the definition of the Input services there was no restriction that the credit can be availed only upto the place of removal - credit allowed. Appeal allowed - decided in favor of appellant.
Issues:
1. Eligibility for Cenvat credit on various services. 2. Dispute regarding export agency charges and their eligibility for credit. 3. Availment of Cenvat credit on outward transportation. Analysis: Issue 1: Eligibility for Cenvat credit on various services The appellants, engaged in manufacturing steel furniture, availed Cenvat credit on inputs, input services, and capital goods for manufacturing finished goods. Show-cause notices were issued, challenging the eligibility of Cenvat credit amounting to Rs. 13,00,598 on services like air ticketing charges, hire charges for cabs, export agency charges, installation charges, and outward transportation charges for the period 2006-2008. The original adjudicating authority confirmed demands and imposed penalties, which were upheld by the Commissioner (Appeals), leading to the present appeal. Issue 2: Dispute regarding export agency charges and their eligibility for credit The Tribunal referred to a previous decision in the same assessee's case, where Cenvat credit on services like commissioning, installation, air travel, and rent-a-cab services was allowed. Drawing from this precedent, the Tribunal allowed the credit in the present appeal as well. Regarding export agency charges, it was established that charges incurred until the place of removal, i.e., ports, are eligible input services. Citing a judgment of the Hon'ble High Court of Gujarat, it was held that Service Tax paid on services utilized for export of final products is admissible, as exporters cannot conduct business without them. Therefore, export agency charges against fees and commissions for exports were deemed cenvatable. Issue 3: Availment of Cenvat credit on outward transportation The dispute regarding the availment of Cenvat credit on outward transportation for the period 2006-2008 was examined. During this period, there was no restriction in the definition of input services that credit could only be availed up to the place of removal. Referring to judgments of the Hon'ble High Court of Karnataka and another case, it was concluded that the issue had been previously decided in favor of the appellants. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief to the appellant. This judgment highlights the importance of interpreting the eligibility of Cenvat credit on various services, especially in the context of exports and outward transportation, based on legal precedents and established principles.
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