Refund of service tax - shipping line

[pradeep kataria]

Co. X engage G as CHA. G makes the payment to Shipping Line and get the reimbursement from Co. X. Shipping Lines raises Bill on G on account of Co. X which is mentioned on the bill also. The question is whether Co. X can claim refund of service tax paid by G to Shipping Line because the Co. x has made the reimbursement to G which includes service tax charged by Shipping Line. Please attach/cite relevant Notification etc.

[Nitin Bhisikar]

Yes, you can avail CENVAT Credit on this bill if Co. X is mentioned as recipient of service on bill of G, CHA. If this conditions fullfilled, then there is no bar under Cenvat Credit Rules, 2004.

AI Summary

CENVAT credit entitlement where service recipient named on bill enables recovery of service tax paid via CHA reimbursement.
Co. X engaged CHA G who paid shipping line charges and was reimbursed; the shipping line's bill identified Co. X as the recipient. If the invoice names Co. X as recipient of the service, Co. X may avail Cenvat credit on the service tax paid routed through the CHA, since there is no bar under the Cenvat Credit Rules, 2004, subject to documentary compliance.