Input service credit for CHA services admissible where imported inputs were cleared for use in dutiable manufacturing.

CHA services used to clear imported inputs and bring them to the factory for manufacture of dutiable finished goods were treated as input services with a sufficient nexus to the manufacturing activity. On that basis, credit was admissible, and the disallowance was set aside in favour of the assessee.

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Issues: Whether credit was admissible on CHA services used for clearance of imported inputs brought to the factory for manufacture of dutiable finished goods.

Analysis: The service was used for clearing imported inputs and for bringing them to the factory for use in the manufacture of finished goods on which duty was payable. On that basis, the service had a sufficient nexus with the manufacturing activity and fell within the category of admissible input service credit.

Conclusion: Credit on the CHA services was held admissible and the disallowance was set aside, in favour of the assessee.

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