is cenvat credit eligible to pure agent

[VAMSI KRISHNA]

Dear All

"A" is a service provider of Customs House Agent Service. "B" is importer of some goods. "A" act as an agent on behalf of "B" for clearence of goods. now my question who is eligible candidate ( "A" or "B" )for availing cenvat credit on input services paid by A which covered under a concept of pure agent ( Reimbursement expenditure) ?

"A" used warehouse services from "C" . "C" issued invoice to "A". the same amount recovered by "A" from "B"(satisfied all conditions of pure agent). If "C" charged any service tax in his bill, my doubt is who is eligible to take credit of service tax ???

AI Summary

Pure agent exclusion: reimbursement treatment affects which party may claim cenvat credit on third party service tax.
If a customs house agent satisfies all statutory pure agent conditions, reimbursements for third party services are excluded from his taxable value and are separately indicated in his invoice; in that situation the importer may claim Cenvat credit if documentary requirements under the Cenvat Credit Rules are met. If the payments fail the pure agent test and remain taxable as the CHA's output, the CHA may claim credit for input services that have nexus with his taxable output, while the importer can claim credit only if otherwise eligible under the Cenvat rules.