2010 (2) TMI 200 - AT - Service Tax

Appeal Allowed for CHA Services Credit in Manufacturing Dutiable Goods

The Appellate Tribunal CESTAT, CHENNAI allowed the appeal, overturning the denial of credit for CHA services used in clearing imported inputs. The ... CENVAT credit on customs house agent services - Input service credit for services used in relation to manufacture of dutiable goods - Admissibility of credit for services utilised in clearance and bringing imported inputs to factoryCENVAT credit on customs house agent services - Admissibility of input service credit - Utilisation of services for manufacture of dutiable goods - Credit of service tax paid on CHA services used for clearance of imported inputs is admissible where such services are utilised for bringing inputs to the factory for manufacture of dutiable finished goods. - HELD THAT: - The Tribunal found that the impugned service - customs house agent services - was utilised for clearing the imported inputs and bringing those inputs to the appellants' factory for use in manufacture of finished goods which are dutiable. On that basis, the Tribunal held that the credit in respect of such service is admissible. The appeal was allowed and the impugned order denying credit was set aside. The Tribunal noted prior authority on similar inputs services but decided on the present facts that utilisation of the service in relation to manufacture of dutiable goods renders the credit admissible. [Paras 4]Impugned order set aside; credit in respect of CHA services admitted and appeal allowed.Final Conclusion: The Tribunal allowed the appeal, holding that CENVAT/service tax credit for customs house agent services utilised to clear imported inputs and bring them to the factory for manufacture of dutiable finished goods is admissible, and set aside the order denying such credit. The Appellate Tribunal CESTAT, CHENNAI allowed the appeal in favor of the appellants regarding the denial of credit for CHA services used for clearing imported inputs. The Tribunal found the credit admissible as the services were used for manufacturing dutiable finished goods. The decision was based on a previous case where similar credit was allowed. The impugned order was set aside, and the appeal was allowed.