Input service credit allowed for godown storage charges linked to imported raw materials used in manufacturing.

Service tax paid on godown charges for storage of imported raw materials was held to qualify as Cenvat credit as an input service. The storage facility was used for imported inputs and raw materials kept in the appellant's godowns for distribution in part quantities to its own units, not for trading from those premises. Because the storage activity had a nexus with manufacturing, it fell within the definition of "input service" under Rule 2(l) of the Cenvat Credit Rules, 2004, and the credit was admissible.

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Issues: Whether service tax paid on godown charges for storage of imported raw materials is eligible for Cenvat credit as input service.

Analysis: The service tax was paid on storage of imported inputs and raw materials in the appellant's godowns. The records showed that the appellant was not trading the imported goods from those premises, but maintaining the godown to distribute part quantities to its own units. The storage service had a nexus with manufacturing activity and fell within the definition of input service under Rule 2(l) of the Cenvat Credit Rules, 2004.

Conclusion: Cenvat credit on the godown charges was admissible.

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