TaxTMI 
TaxTMI 
Whether Manufacturer, who is under an obligation to export certain quantity of goods, as per govt. order, fullfills export obligation by availing services of Export House (*which has been allowed by govt. in given case), where Export House is procuring goods on behalf of the said Manufacturer from other manufacturer can be regarded as "input services" & can the said manufacturer claim CENVAT credit for ST paid to Export House?
Whether CENVAT Credit can be claimed?
01 Jan 2016 
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CENVAT credit available where export house acts as job worker procuring goods on behalf, service tax claimable as input service.
The export house's procurement of goods on behalf of the manufacturer is treated as a job work/input service; service tax paid to the export house thus qualifies as an input service and the manufacturer may avail and utilize CENVAT credit in or in relation to the manufacture of dutiable final products or provision of taxable output services, subject to applicable cenvat rules. No clear judicial authority on the point was identified in the discussion. (AI Summary)
The export house's procurement of goods on behalf of the manufacturer is treated as a job work/input service; service tax paid to the export house thus qualifies as an input service and the manufacturer may avail and utilize CENVAT credit in or in relation to the manufacture of dutiable final products or provision of taxable output services, subject to applicable cenvat rules. No clear judicial authority on the point was identified in the discussion. (AI Summary)