Cenvat credit on wharfage charges is admissible when the services are used for export-related output service and actual use is undisputed.

Cenvat credit was admissible on service tax paid on wharfage charges where the services were used for providing the output service and were found to be integrally connected with export-related activity. As there was no dispute about the actual use of those services for the output operation, denial of credit was not justified, and the assessee succeeded.

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Issues: Whether wharfage charges paid on services used for providing output service entitled the assessee to Cenvat credit of the service tax paid thereon.

Analysis: The dispute was confined to admissibility of Cenvat credit on wharfage charges. The services were accepted as having been used for providing output service, and the Tribunal found that the services were integrally connected with export-related output service. In the absence of any dispute on actual use of the service for the output activity, denial of credit was not justified.

Conclusion: Cenvat credit on the service tax paid on wharfage charges was held admissible and the appeal succeeded.

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