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Appellate Tribunal allows cenvat credit for CHA services in export process. The Appellate Tribunal CESTAT, Mumbai allowed the appeal in favor of the appellants, permitting the availability of cenvat credit for services rendered by ...
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Appellate Tribunal allows cenvat credit for CHA services in export process.
The Appellate Tribunal CESTAT, Mumbai allowed the appeal in favor of the appellants, permitting the availability of cenvat credit for services rendered by Customs House Agents (CHA) for export of goods. The tribunal upheld that the CHA services were used in relation to the manufacturing process, contrary to the Department's contention. The decision was based on a previous tribunal order and supported by Orders-in-Original, leading to the allowance of cenvat credit and the dismissal of the Department's claims for recovery, interest, and penalty.
Issues: Availability of cenvat credit on services rendered by Customs House Agents (CHA) for export of goods.
In the case before the Appellate Tribunal CESTAT, Mumbai, the appellants, engaged in manufacturing safety razor blades and shaving systems, were availing cenvat credit for service charges paid to CHA for clearing and forwarding services for export. The Department issued a show-cause notice for recovery of cenvat credit, interest, and penalty, contending that CHA services were not used in or in relation to the manufacture of final products. The Assistant Commissioner confirmed the notice, imposing a penalty. The Commissioner (Appeals) also rejected the appeal. The appellants argued that a previous tribunal order allowed cenvat credit for CHA services in their own case, supported by Orders-in-Original. The Revenue reiterated the lower authorities' findings.
The tribunal, after considering both sides, noted that a previous order had already decided on the availability of cenvat credit for CHA services in a similar case. The tribunal observed that the lower authorities had started granting the benefit to the appellants, as evidenced by the Orders-in-Original presented during the hearing. Consequently, the tribunal upheld that the cenvat credit for services rendered by CHA is admissible to the appellants. Therefore, the appeal was allowed, and the decision was pronounced in court by Mr. Sahab Singh.
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