CHANDRA ENGINEERS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) AS per the facts on record, appellant is engaged in the manufacture of lamination, stampings/steel sheet strips and transformers. They were availing the benefit of Cenvat credit of service tax paid on various services. Proceedings were initiated against the appellant for denial of Cenvat credit of Rs. 52,536/ - availed by them on various invoices categorised as follows: -

(2.) The appellant has taken a specific stand that the services of CHA were received by them for clearance of the imported raw material. CHA in turn availed the services of other agencies working at port and paid the charges on behalf of assessee. CHA raised the separate reimbursable bills supported by the original invoices of all other agencies who had worked at the port for clearing the goods. They have clarified that no service tax is charged by the CHA against this reimbursable bill. They have further submitted that the bills charged by the other agencies can be linked to the main import documents like bill of entry, bill of lading, container no., vessel no. etc. and all such bills of the agencies having been raised for appellant, though through the CHA, the credit of service tax would be available to the assessee.

(3.) I find that the above submission of the appellant do not stand considered in detail by the lower authorities. If the bills of other agencies engaged by CHA are directly linked to the imports made by the assessee and CHA was only acting as a intermediary, the benefit of credit of service tax paid by the other agencies should not be denied to the appellant. As such I set aside the confirmation of demand on the said ground and remand the matter to the original adjudicating authority to verify the correctness of the statement made by the appellant and if the bills raised by the other agencies can be linked to the imports made by the appellant, the credit should be allowed. The appeal is disposed of in above manner.