CCE VAPI Vs. M/S. MICRO INKS LTD.

JUDGEMENT

(1.) THE facts of the case in brief are that during the course of EA -2000 Audit, it was noticed that the respondent, during the period October 2006 to February 2008, had availed cenvat credit amounting to Rs. 1,68,007/ - on Custom House Agent services used in export of their goods. The department entertained a view that as per Rule 2(1) of Cenvat Credit Rules, 2004, the said service does not fall under the definition of input service and therefore the respondent had wrongly availed cenvat credit. Accordingly, show cause notice dated 31.03.09 was issued which after due process of law was adjudicated vide impugned order dated 22.09.10 wherein demand of Rs. 1,68,007/ - along with interest was confirmed and equal penalty was imposed. On an appeal filed by the respondent, the Commissioner took a view that credit has been correctly taken and allowed the appeal. Revenue is in appeal.

(2.) THE ld. A.R. submits that credit is not admissible because the credit is available only up to the place of removal and in this case is the place of removal is factory gate whereas credit has been availed in respect of export of the goods. I find that the ld. Commissioner for allowing the credit has relied upon the following Tribunal's decisions.