Tribunal Upholds Cenvat Credit on Agent Services for Exports

The Tribunal rejected the Revenue's appeal, affirming the admissibility of cenvat credit on Custom House Agent services for the export of goods. The Commissioner's decision to allow the credit was upheld based on previous Tribunal decisions, which considered the load port as the place of removal for exports on F.O.B. basis. The Revenue's argument that the credit was availed beyond the place of removal (factory gate) was dismissed, leading to the rejection of the appeal and confirming the respondent's entitlement to the credit amounting to Rs.1,68,007/-.

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Issues:
Cenvat credit availed on Custom House Agent services for export of goods - Admissibility of credit based on place of removal.

Analysis:
The case involved a dispute regarding the admissibility of cenvat credit amounting to Rs.1,68,007/- on Custom House Agent services used in the export of goods by the respondent. The department contended that the service did not fall under the definition of input service as per Rule 2(1) of Cenvat Credit Rules, 2004, leading to the issuance of a show cause notice dated 31.03.09. The impugned order dated 22.09.10 confirmed a demand for the amount along with interest and imposed an equal penalty.

Upon appeal, the Commissioner took the view that the credit had been correctly taken and allowed the appeal, prompting the Revenue to file an appeal. The Revenue argued that the credit was inadmissible as it was availed beyond the place of removal, which, in this case, was the factory gate, not the point of export. However, the Commissioner relied on Tribunal decisions such as CCE Vs. Adani Pharmachem Pvt. Ltd., CCE Rajkot Vs. Rolex Rings Pvt. Ltd., and CCE Vs. Vhamundi Textiles (Silk Mills) Ltd., which held that in the case of exports on F.O.B. basis, the load port should be considered as the place of removal, making the credit admissible.

The Tribunal found no merit in the Revenue's appeal as the Commissioner had correctly relied on previous Tribunal decisions, and no contradictory decision from a higher forum was presented. Therefore, the appeal by the Revenue was rejected, affirming the admissibility of the cenvat credit on Custom House Agent services for the export of goods.

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