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October 2011

(2011) 23 STR 276 (Tri.-Chennai) — UCAL Fuel System Ltd. v. Commissioner of Central Excise, Chennai.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Cenvat Credit of Service Tax — Services in respect of preparation of documents for pre-shipment and post-shipment of export goods — Eligible claim of CENVAT credit.

Facts:
The appellants, M/s. UCAL Fuel System Ltd. were availing services in respect of preparation of documents for pre-shipment and post-shipment of export goods and were claiming credit of services paid on the same. The appellants were denied Cenvat credit of service tax of Rs.1,28,914 as the service provider did not mention the nature of the taxable services in any of the documents, on the basis of which appellants claimed the credit. The appellants argued that the services rendered had direct nexus with the business of the manufacture of the assessee’s final product and hence were in the nature of business auxiliary service.

Held:
After observing bills and other documents of the appellants, the Tribunal held that services availed by the appellants were business auxiliary services in nature and they were entitled to avail Cenvat credit of service tax paid on such services as per Rule 2(1) of Cenvat Credit Rules, 2004.

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