2008 (8) TMI 307 - AT - Service Tax

Appellate Tribunal allows Cenvat credit on C & F services paid, influenced by earlier ruling.

The Appellate Tribunal CESTAT Ahmedabad allowed the appeal, overturning the disallowance of Cenvat credit on C & F services paid on CHA availed by the ... Cenvat credit on Clearing and Forwarding (C & F) services - admissibility of service-tax credit for 100% EOU exports - place of removal treated as load port for C & F / FOB exports - application of Board Circular clarifying place of removal - precedential effect of earlier Tribunal decisionCenvat credit on Clearing and Forwarding (C & F) services - admissibility of service-tax credit for 100% EOU exports - place of removal treated as load port for C & F / FOB exports - application of Board Circular clarifying place of removal - Whether service tax paid on C & F services availed for export (CHA) is admissible as Cenvat credit to the appellant (a 100% EOU). - HELD THAT: - The Tribunal accepted the appellant's submissions and followed its earlier decision in C.C.E., Rajkot v. 6 respondents, which construed the Board Circular on place of removal and held that for C & F/FOB exports the place of removal is the load port. On that basis the service tax paid on C & F services relating to export removal was held to be attributable to export activity and therefore admissible as Cenvat credit to a 100% EOU. The appellant's appeal was allowed by applying that precedent and granting consequential relief, overruling the disallowance recorded by the Commissioner (Appeals).Appeal allowed; service tax on C & F services in respect of export removals (load port) is admissible as Cenvat credit to the 100% EOU, with consequential relief.Final Conclusion: The Tribunal allowed the appeal, holding that service tax paid on C & F services (CHA) relating to export removals is eligible for Cenvat credit in the case of a 100% EOU because the place of removal is the load port, and granted consequential relief in accordance with the Tribunal's earlier decision. The Appellate Tribunal CESTAT Ahmedabad allowed the appeal challenging disallowance of Cenvat credit on C & F services paid on CHA availed by the appellants. The decision was based on a Tribunal ruling allowing service tax credit for C & F services in the case of 100% EOU, considering the place of removal as the load port for C & F exports or FOB exports. The appeal was allowed with consequential relief.