Custom, Excise & Service Tax Tribunal
M/S. Deepak Nitrite Ltd vs Cce Raigad on 31 August, 2012
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, WEST ZONAL BENCH AT MUMBAI
COURT NO. II
APPLICATION NO. E/S/1909/12
IN APPEAL NO.E/1248/12
(Arising out of Order-in-Appeal No. US/391/RGD/2012 dated 14.06.2012 passed by the Commissioner of Central Excise (Appeals), Mumbai)
For approval and signature:
Honble Shri. P.R. Chandrasekharan, Member (Technical)
1. Whether Press Reporters may be allowed to see : No
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the : Yes
CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy : Yes
of the Order?
4. Whether Order is to be circulated to the Departmental : Yes
authorities?
M/s. Deepak Nitrite Ltd.,
Appellant
Versus
CCE Raigad
Respondent
Appearance Ms Manasi Patil, Advocate for Appellant Shri M.S. Reddy, Dy. Commissioner (A.R.) for Respondents CORAM:
Shri. P.R. Chandrasekharan, Member (Technical) Date of Hearing : 31.08.2012 Date of Decision : 31.08.2012 ORDER NO.
Per P.R. Chandrasekharan The appeal and stay application are directed against Order-in-Appeal No. US/391/RGD/2012 dated 14.06.2012 passed by the Commissioner of Central Excise (Appeals), Mumbai.
2. The appellant M/s. Deepak Nitrite Ltd., availed CENVAT credit of service tax paid on CHA service in respect of the goods exported by them. The department was of the view that CHA service is not eligible for CENVAT credit and, accordingly denied CENVAT credit of service tax paid on CHA services amounting to Rs.2,23,737/- along with interest thereon and also imposed equivalent amount of penalty. The appellant preferred an appeal before the lower appellate authority who mechanically rejected the appeal on the ground that the CHA service has been rendered after removal of the goods from the factory. Hence the appellant is before me.
3. The learned Advocate for the appellant submits that the CHA service has been availed in the context of an export transaction and as per the terms of contract for export, the export is on FOB basis and, therefore, the place of removal is the port of export and whatever expenses has been incurred upto the place of removal is rightly eligible for CENVAT credit. She also relies on the judgment of the Honble High Court of Gujarat in the case of CCE & Cus. vs. Mundra Port & Special Economic Zone Ltd. 2011 (21) STR 361 (Guj.) wherein the honble High Court has held that services of CHA is an eligible input service as per Rule 2(l) of CENVAT Credit Rules, 2004. Further this Tribunal in the cases of Adani Pharmachem P. Ltd. 2008 (232) ELT 804 (Tri. Ahmd.), Rolex Rings P. Ltd. 2008 (230) ELT 569 (Tri. Ahmd.) and Fourrts (I) Laboratories Pvt. Ltd. 2010 (19) STR 86 (Tri. Chennai) held that CHA service is an eligible service under Rule 2(l).
4. The learned A.R. representing the Revenue fairly concedes the position and submits that there are a number of decisions on the subject matter in favour of the assessee.
5. I have carefully considered the rival submissions. As the issue is already settled, I am of the view that the appeal can be disposed of at this stage. Therefore, after dispensing with the requirement of pre-deposit of the dues adjudged, I take up the appeal for consideration.
6. As rightly pointed out by the learned Counsel the transaction involved is export and the terms of contract is FOB, therefore, the place of removal becomes port of export and whatever expenses incurred upto that point is eligible for CENVAT credit. The decisions of the Honble High Court of Gujarat in the case of Mundra Port & Special Economic Zone Ltd. (supra) and this Tribunal in the case of Adani Pharmachem P. Ltd. (supra), Rolex Rings P. Ltd. (supra) and Fourrts (I) Laboratories Pvt. Ltd. (supra) squarely apply to the facts of the present case. Respectfully following these decisions, I allow the appeal with consequential relief, if any. Stay application is also disposed of.
(Dictated in Court) (P.R. Chandrasekharan) Member (Technical) nsk 4