CENVAT credit on fumigation services for export container packing allowed as an input service

CENVAT credit was admissible on service tax paid for fumigation of export containers at factory premises because the activity formed part of packing for exported finished goods. The service was treated as integrally connected with packing expenses, which qualify for credit as input services. On that basis, the fumigation service fell within the scope of input service for CENVAT credit purposes, and credit had to be allowed in favour of the assessee.

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Issues: Whether CENVAT credit of service tax paid on fumigation services used for export container packing at the factory premises was admissible as input service.

Analysis: The fumigation of export containers was treated as part of packing activity required for export of finished goods. Since packing expenses are eligible for credit and the service tax had been paid on the fumigation service, the service was held to fall within the scope of input service for CENVAT credit purposes.

Conclusion: CENVAT credit on fumigation services was admissible and had to be allowed in favour of the assessee.

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