2016 (2) TMI 553 - AT - Central Excise

Appeal allowed on CENVAT Credit for CHA services in export cases

M/s Piramal Healthcare Ltd. Versus Commissioner of Central Excise, Thane-I

The Tribunal allowed the appeal in favor of the appellant concerning the admissibility of CENVAT Credit on services received from CHA for export of ... CENVAT Credit in respect of Service Tax paid on services received from CHA in respect of export of consignment - Held that:- The issue is settled in view of the clarification issued by CBE&C. In view of a clear cut clarification by CBE&C, demand of reversal of CENVAT Credit taken in respect of CHA services utilized for export of goods cannot be sustained. Issues involved:Admissibility of CENVAT Credit on services received from CHA for export of consignment.Analysis:1. Admissibility of CENVAT Credit on CHA services: The appellant, engaged in manufacturing excisable goods, availed CENVAT Credit for Service Tax paid on services received from CHA for consignment export. The Revenue contended that these services were beyond the place of removal and not covered under the definition of input services. However, the appellant argued that the issue was settled by the CBE&C through Circular No. 999/6/2015-CX, which clarified that in cases of export clearance, the place of removal is where the shipping bill is filed, making the services eligible for credit. The appellant also cited various Tribunal and High Court decisions supporting their position.2. Judgment: After considering the arguments, the Tribunal found that the issue was settled by the CBE&C's clarification. The Tribunal noted that as per the clarification, the place of removal for export goods is where the shipping bill is filed, making the CHA services eligible for CENVAT Credit. Therefore, the demand for reversal of the credit on CHA services for export of goods was not sustainable. Consequently, the appeal was allowed in favor of the appellant.This judgment highlights the importance of official clarifications in resolving disputes regarding the admissibility of CENVAT Credit on specific services, providing clarity on the determination of the place of removal for export goods and its impact on credit eligibility. The reliance on previous decisions and official circulars played a crucial role in establishing the appellant's entitlement to the credit, emphasizing the significance of legal precedents and authoritative interpretations in tax matters.