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Cenvat Credit without name mentioned in challan
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My client is a C&F agent who does not have a CHA licence. Therefore he availed the services of a CHA in respect of import cargo. Now port wharfage was paid by CHA to port trust. The challan/ bill of port trust contains the name of CHA & importer only. The CHA raised a bill for his service chgs on my client & mentioned port wharfage paid with service tax as reimbursement of expenditure from client. My que. is can the C&F agent claim CENVAT credit of port wharfage even though his name is nowhere mentioned in port challan but he has reimbursed the payment of same to CHA & charged service tax on gross amount of C&F bill from importer.
CENVAT credit availability when reimbursed port charges used in output service, subject to inclusion in output value. Claiming CENVAT credit for port wharfage paid by a CHA and reimbursed by a C&F agent is conditional on showing the input service is used for providing the agent's output service and meeting all other statutory criteria; additionally, the value of the reimbursed input service must be included in the value of the output service. (AI Summary)