CENVAT credit on export documentation services allowed where pre-shipment and post-shipment work had direct business nexus.

Service tax paid on preparation of pre-shipment and post-shipment export documents, and allied export-related documentation services, was treated as having nexus with the assessee's manufacture and export business and as falling within business auxiliary service. On that basis, the denial of CENVAT credit was held unsustainable, and the assessee was entitled to avail credit of the service tax paid on those services.

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Issues: Whether service tax paid on export-related document preparation and allied services was eligible for CENVAT credit as a service having nexus with the assessee's business.

Analysis: The documents and the show-cause notice indicated that the service provider had charged for preparation of pre-shipment and post-shipment documents in relation to export of the assessee's final products. Such activity was treated as connected with the manufacture and export business of the assessee and, on that basis, as falling within the nature of business auxiliary service.

Conclusion: The denial of CENVAT credit was unsustainable and the assessee was entitled to avail credit of the service tax paid on the said services.

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