2009 (7) TMI 226 - AT - Service Tax

Credit of tax paid on CHA service availed at port for export of goods - Larger Bench in the case of ABB Limited v. CCE 2009 - TMI - 34139 - CESTAT, BANGALORE has held that the expression activities relating to business as appearing in the definition of input services, has a wide import and includes both essential and auxiliary activities of business including outward transportation. As such, services received for outward transportation of goods from the place of removal has been held to be input services. By applying the ratio of the decision to the facts of the present case, credit is allowable

Summary

The Appellate Tribunal CESTAT, Ahmedabad upheld that service tax paid on Customs House Agent services for export of goods is creditable. The Larger Bench clarified that services for outward transportation of goods are considered input services. The appeal by the Revenue was rejected. Stay petition was also disposed of.