Cenvat Credit allowable on Courier Services used for Export of Goods: CESTAT [Read Order]

The Ahmedabad bench of the CESTAT has held that cenvat credit is allowable on the amount of input tax paid for courier services during the course of export of services.

From the period April 2015 to June 2017, the appellant, M/s Matrix Comsee Pvt Ltd had availed Cenvat credit on the basis of invoices issued by the M/s DHL Express India Ltd., and M/s Fedex Express Transport and Supply Chain Service. However, during the course of audit, the department objected to the issue of availment of Cenvat credit on the ground that service provider had collected the consignment from the Appellant’s factory gate and delivered the goods at the overseascustomers, hence, services which were rendered and received by the Appellant are beyond the place of removal and not covered under the definition of “Input Service” as per the definition given under Rule 2(l) of the Cenvat Credit Rules, 2004.

Judicial Member Mr. Ramesh Nair held that the limited issue to be decided that whether the Appellant is entitled for cenvat credit on Courier Service.

“I find that the Appellant claimed that the Courier Service was used for delivery of their export goods from their factory premises to the premises of customersabroad. The impugned service was used by the Appellant for export of goods. In these circumstances, I hold that the appellant is entitled to avail Cenvat credit on input service namely Courier Services which have been availed by the appellant in the course of their business to export of goods. further, I find that in number of cases Tribunal has consistently taken a view that Cenvat Credit in respect of Courier Service is admissible,” the Tribunal said.

To Read the full text of the Order CLICK HERE

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