While allowing cenvat credit on account of C&F Agent service, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad bench has held that such services are C&F Agent service is “input service” for the purpose of Rule 2(l) of Cenvat Credit Rules, 2004.
Before the Tribunal, the appellant, NITCO Limited claimed that in respect of C&F Agent service, the service is provided upto at the place of removal. Therefore, as per the definition of input service provided under Rule 2(l) of Cenvat Credit Rules, 2004, all the services upto the place of removal are admissible input service. He placed reliance on the decision of this Tribunal in the case of NITCO LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE & ST.
Allowing the plea of the appellant, Mr. Ramesh Nair (Judicial Member) held that“the dispute is related to Cenvat on C&F Agent service. The C&F Agent service is provided for sale of the goods take place on behalf of the appellant. The sale of goods from the C&F Agent service is treated as sale by the appellant themselves, therefore, the C&F Agent services are received upto the place of removal. This issue has been considered in the appellant’s own case cited (Supra).”
Relying on the above decision, the CESTAT reversed the order of the department and held that “Accordingly, I am of the view that the C&F Agent Service is admissible input service in the terms of Rule 2(l) of Cenvate Credit Rules, 2004. Hence, the impugned order is set-aside and the appeal is allowed.”
Subscribe Taxscan Premium to view the JudgmentBuy books of essential tax practice with exciting offers at shopscan.in
