Cenvat credit on dredging and marine consultancy services upheld where services supported business use at a private jetty.

Cenvat credit was held admissible on dredging services and marine consultancy services used to ensure smooth navigation of vessels at a private jetty. The Tribunal treated the service recipient's payment of consideration and business use as decisive, and held that the location of supply was immaterial once receipt of service, payment by the assessee, and business nexus were established. It followed its earlier view that dredging-related services used in business operations at a jetty qualify as input services. Credit could not be denied merely because the services were rendered outside the factory or at a jetty not owned by the assessee.

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Issues: Whether Cenvat credit was admissible on dredging services and marine consultancy services used for smooth navigation of vessels at a private jetty.

Analysis: The service recipient was the appellant, the service charges and service tax were borne by the appellant, and the services were availed for the appellant's business purpose of ensuring smooth navigation at the jetty. The location where the services were provided was held to be immaterial once receipt of service, payment of consideration, and business use were established. The Tribunal also followed its earlier view that dredging-related services used for business operations at a jetty qualify as input services and that credit cannot be denied merely because the services were obtained outside the factory or at a private jetty.

Conclusion: Cenvat credit on dredging services and marine consultancy services was held admissible and the issue was decided in favour of the assessee.

Ratio Decidendi: Where a service is received by the assessee, the consideration is borne by the assessee, and the service is used for the business, Cenvat credit cannot be denied merely because the service is rendered at a location not owned by the assessee.

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