Appellate Tribunal allows Cenvat Credit for C & F services in sale of goods

The Appellate Tribunal CESTAT Ahmedabad held that the appellant is entitled to Cenvat Credit for C & F services used in the sale of goods. The Member found that the C & F Agent's premises qualify as a place of removal under the Central Excise Act, making the services up to that point admissible input services. Citing relevant judgments, the Member concluded that the appellant is eligible for the credit, setting aside the impugned orders and allowing the appeals.

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Issues:
Whether the appellant is entitled to Cenvat Credit for C & F services received for the sale of goods.

Analysis:
The judgment delivered by Hon'ble Member (Judicial) Mr. Ramesh Nair at the Appellate Tribunal CESTAT Ahmedabad addresses the issue of Cenvat Credit eligibility for C & F services utilized in the sale of goods. The appellant did not appear for the hearing, prompting the final disposal of the appeal due to repeated listings. The Authorized Representative for the revenue cited relevant judgments, including Commissioner of Central Excise and S.T. v/s. Ultra Tech Cement Ltd. and Commissioner of C.Ex., Ahmedabad-II v/s. Cadila Healthcare Ltd. The Member considered the submissions and records, focusing on whether the appellant is entitled to Cenvat Credit for clearing and forwarding services related to their goods' sale. The definition of 'place of removal' under Section 4(3)(c)(iii) of the Central Excise Act, 1944 was crucial, stating that the C & F Agent's premises qualify as a place of removal. Rule 2(l) of the Cenvat Credit Rules, 2004 deems services up to the place of removal as admissible input services. Since goods are cleared from the factory and sold through the C & F Agent, all services up to the C & F Agent are considered up to the place of removal, making the C & F Agent service admissible. The judgment in Ultra Tech Cement Ltd. supported the appellant, emphasizing the admissibility of services used up to the place of removal. Similarly, the judgment in Cadila Healthcare Ltd. affirmed that C & F Agent services fall within the ambit of Rule 2(l) of the Cenvat Credit Rules, 2004, further supporting the appellant's case.

Based on the analysis, the Member concluded that the appellant is entitled to Cenvat Credit for C & F Agent services. Consequently, the impugned orders were set aside, and the appeals were allowed.

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