2013 (5) TMI 120

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....ules, 2004. During the course of audit by the Central Excise Officers of Vadodara-II it was observed that the appellants have availed credit on input service viz., handling agency service provided for the period from January' 08 to June' 09 amounting to Rs.2,56,104/- which is not covered under Rule 2(1) of Cenvat Credit Rules, 2004. The credit availed by the appellants are wrongly in as much as the said services are not in or in relation to provision of output service. Accordingly, a show cause notice dated 30.11.09 issued for demanding cenvat credit wrongly availed amounting to Rs.2,56,104/- along with imposition of penalty and recovery' of interest. The said show cause notice was disposed of vide impugned order dated 26.02.10, wherein the....

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....ombay in the case of Ultra Tech Cement Ltd. and have filed an SLP before the Apex Court. 5. Ld. counsel appearing on behalf of the respondent would submit that this bench has been taking a consistent view that the credit of service tax paid by the cargo handling agencies or CHAs is allowed and produces the copies of final orders No.A/992/VZB/AHD/2012, dated 16.07.12 and A/10123/WZB/AHD/2013 dated 21.01.13. 6. I have considered the submissions made by both sides and perused the records. 7. I find that the issue involved in this case is regarding the cenvat credit of service tax paid by CHAs while handling the consignments of export of the respondent herein. It is undisputed that CHA had rendered the services at the port. I find that....

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.... the destination point and the credit of the service tax paid on the transportation up to such place of sale would be admissible. Inasmuch as in the present case also, the ownership of the goods remain with the seller till the port area, it can be safely held that all the services availed by the exporter till the port area are required to be considered as input service inasmuch as the same are clearly related to the business activities. Activities relating to business are covered by the definition of input service and admittedly CHA and Surveyors' services are relating to the export business. As such. I agree with the reasonings adopted by Commissioner (Appeals) that the credit of duty paid on such services is admissible to the respondents.....