KARUR KCP PACKAGING PVT. LTD. Vs. CCE

JUDGEMENT

(1.) VIDE the impugned order the Commissioner (Appeals) sustained the order of the original authority demanding an amount of Rs. 99,439/ - held to be inadmissible CENVAT credit availed by the appellants M/s. Karur KCP Packaging (P) Ltd. during 4.11.2006 to 9.11.2006, applicable interest and a penalty of equal amount imposed under Section 11AC of the Central Excise Act. The demand is raised on two counts; the inadmissible credit of service tax paid under C&F agent service upto the Port area in relation to finished goods exported and CENVAT credit of service tax availed on the strength of documents not prescribed for the purpose in the Central Excise Rules.

(2.) MOVING the application for waiver of predeposit the learned Counsel for the appellants submits that the lower authorities had denied credit of service tax incurred under C&F agents' service in relation to export of their finished goods for the reason that the CBEC Circular No. 91/8/2007 -ST dated 23.8.2007 which clarified admissibility to credit of such service tax incurred up to place of removal of finished goods was issued in August 2007 and the same did not apply to similar transactions prior to 23.8.2007. It is submitted that the authorities did not deny that the credit availed was admissible in terms of the Circular of the Board dated 23.8.2007. He also relies on the following decisions of the Tribunal wherein it was held that the services availed by the exporter till the Port area were required to be considered as input service inasmuch as the same were clearly related to the business activities and the ownership of the goods remained with the seller till the Port area: