Input service credit for export-related business services was held available where used in manufacturing and export operations.

Input service credit is available for services used in the course of business and manufacturing activity, including export-related services. The dispute concerned denial of credit on Custom House Agent services, cargo handling, export documentation, and repair and maintenance of motor vehicles. Relying on Bombay HC authority, the CESTAT noted that the services were used for exporting goods manufactured by the appellant and therefore qualified as input services. The assessee was entitled to avail input service credit on the services in question.

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Issues: Whether the assessee was entitled to input service credit on services used for export and manufacturing-related business activities.

Analysis: The dispute concerned denial of credit on services such as Custom House Agent services, cargo handling, export documentation, and repair and maintenance of motor vehicles. Reliance was placed on the Bombay High Court's ruling that credit is available where the services are availed in the course of business and manufacturing activity. The services in question were used for exporting goods manufactured by the appellant.

Conclusion: The assessee was entitled to avail input service credit on the services in question.

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