2021 (2) TMI 495

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.... on the file of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai (for brevity "the Tribunal"). 2.The appeal was admitted on 06.10.2017, on the following substantial questions of law:- "(1) Whether the Tribunal is correct in allowing the CENVAT credit availed and distributed by the respondent prior to getting registered as an input service Distributor under the Act; (2) Whether the Tribunal is correct in setting aside the imposition of penalty under erstwhile Rule 15(4) of the CENVAT Credit Rules, 2004, on the facts and circumstances of the case? and (3) Whether Tribunal is correct in allowing the CENVAT Credit on CHA services when the same is availed after the goods has been cleared from the place of....

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....y. Question No. 1 therefore shall have to be answered in favour of the respondent and against the assessee." 4.The above decision has been accepted by the Central Board of Excise and Customs, vide Circular dated 16.02.2018. Therefore, the above questions have to be decided against the Revenue and accordingly, decided so. 5.So far as the third substantial question of law is concerned, Mr.A.P.Srinivas, learned Senior Standing Counsel strenuously argued that the Tribunal committed an error in allowing the CENVAT credit on Customs House Agents (CHA) services. It is submitted that these services are not in relation to the manufacturing activities of the assessee and these services are with reference to the clearance of goods after they were mo....

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....stoms dated 28.02.2015 wherein, it has been clarified as follows:- "6. In the case of clearance of goods for export by manufacturer exporter, shipping bill is filed by the manufacturer exporter and goods are handed over to the shipping line. After Let Export Order is issued, it is the responsibility of the shipping line to ship the goods to the foreign buyer with the exporter having no control over the goods. In such a situation, transfer of property can be saic to have taken place at the port where the shipping bill is filed by the manufacturer exporter and place of removal would be this Port/ICD/CFS. Needless to say eligibility to CENVAT Credit shall be determined accordingly." 7.The above circular dated 28.02.2015, has been reiterated....