TaxTMI 
TaxTMI 
Dealer registered under Central Excise engaged in imports is also registered under S.Tax and providing output service under the category of Business Auxiliary Service( local market exploration ) and have avialed input service credit on CHA Service and other import realted services and discharged the service tax liabilty from the credit so earned. Whether he is eligible to avail such credit and the services can be considered as input services or otherwise?
Input service credit and trading activity
03 Mar 2011 
2 Replies 
1444 Views Asked by
Cenvat Credit eligibility for CHA services contested; one view allows credit when used for Business Auxiliary Service, another denies it.
A dealer providing Business Auxiliary Service sought to claim credit for Customs House Agent and import-related services. One view treats CHA services as Input Service used in providing the output service and permits availing Cenvat Credit under the Cenvat Credit Rules, 2004. A contrary view contends CHA services are not connected with the specific output service of local market exploration and thus do not qualify as input services for credit. (AI Summary)
A dealer providing Business Auxiliary Service sought to claim credit for Customs House Agent and import-related services. One view treats CHA services as Input Service used in providing the output service and permits availing Cenvat Credit under the Cenvat Credit Rules, 2004. A contrary view contends CHA services are not connected with the specific output service of local market exploration and thus do not qualify as input services for credit. (AI Summary)