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Court : CESTAT
Brief : : Rule 3 of the CENVAT Credit Rules, 2004 -
CENVAT credit - Respondents were utilizing services of
Customs House Agent (CHA) and surveyors at time of
export of goods by treating same as input service -
Respondents continued to remain owners of goods till
same were exported as such place of removal in case of
exported goods was port area - Whether since ownership
of goods remained with respondents till port area, it
could be safely concluded that all services availed by
them till port area were required to be considered as
input service inasmuch as same were clearly related to
business activities - Held, yes - Whether, therefore,
credit of duty paid on such services was admissible to
respondents - Held, yes
Citation : Commissioner of Central Excise (Appeals)
v. Rolex Rings (P.) Ltd. [Appeal No. E/375 & 454 of
2007]
Judgment :
FACTS
The issue involved in the instant appeals was as to
whether the respondents were entitled to avail credit of
service tax paid on the services of Customs House Agent
(CHA) and surveyors utilized by them at the time of
export of the goods by treating the same as input
service.
HELD
It was found that the CHA and surveyors’ services were
utilized at the time of the export of the goods. The
respondents continued to remain the owner of the goods
in question till the same were exported. As such, it
could be reasonably concluded that the place of removal
in case of exported goods was that port area. The above
interpretation was also supported by para 8.2 of the
Board’s circular No. 91/8/2007-ST, dated 23-8-2007
laying down that where sale takes place at the
destination point and the ownership of the goods remain
with the seller till the delivery of the goods, the
place of removal would get extended to 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 instant case also, the
ownership of the goods remained with the seller till the
port area, it could be safely held that all the services
availed by the exporter till the port area were required
to be considered as input service inasmuch as the same
were 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, the reasonings adopted by the Commissioner
(Appeals) that the credit of duty paid on such services
was admissible to the respondents was correct. [Para 4]
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