C&F Agent Service is admissible input service under Cenvat Credit Rules

Nitco Limited Vs C.C.E. & S.T. (CESTAT Ahmedabad)

C&F agent Service is admissible input service

The CESTAT, Ahmedabad in M/s. NITCO LIMITED v C.C.E. & S.T.-DAMAN [Excise Appeal No. 13016 of 2019] has held that the Clearing and Forwarding (“C&F”) agent service is an admissible input service in the terms of Rule 2(l) of the CENVAT Credit Rules, 2004 (“the CENVAT Credit Rules”).

Facts:

M/s. NITCO LIMITED (“the Appellant”) is engaged in providing services connected with the C&F operations.

The Appellant contended that, in respect of C&F Agent service, the service is provided upto at the place of removal. Therefore, as per the definition of “input service” provided under Rule 2(l) of the CENVAT Credit Rules, all the services upto the place of removal are admissible input service.

An appeal was preferred by the Appellant which was dismissed vide order (“the Impugned Order”) by the Revenue Department (“the Respondent”).

Being aggrieved by the Impuagned Order, the present appeal has been filed.

Issue:

Whether the Appellant is entitled for CENVAT Credit on C&F Agent Services?

Held:

The CESTAT, Ahmedabad in Excise Appeal No. 13016 of 2019, held as under:

• Observed that, the C&F Agent service is provided for sale of the goods take place on behalf of the Appellant. The sale of goods with the help of the C&F Agent service is treated as sale by the Appellant themselves, therefore, the C&F Agent services are received upto the place of removal.
• Set aside the Impugned Order.
• Held that, the C&F Agent Service is admissible input service.

FULL TEXT OF THE CESTAT AHMEDABAD ORDER

The issue involved in the present case is that whether the appellant is entitled for Cenvat Credit on C&F Agent Services.

2. Shri. Prasanna Sudke, Learned Chartered Accountant appearing on behalf of the appellant submits that in respect of C&F Agent service, the service is provided upto at the place of removal. Therefore, as per the definition of input service provided under Rule 2(l) of Cenvat Credit Rules, 2004, all the services upto the place of removal are admissible input service. He placed reliance on the decision of this Tribunal in the case of NITCO LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE & ST, DAMAN-2022 (5) TMI-CESTAT AHMEDABAD.

3. Shri. J A Patel Learned Superintendent (Authorized Representative) appearing on behalf of the Revenue reiterates the finding of the impugned order.

4. I have carefully considered the submissions made by both the sides and perused the records. I find that the dispute is related to Cenvat on C&F Agent service. The C&F Agent service is provided for sale of the goods take place on behalf of the appellant. The sale of goods from the C&F Agent service is treated as sale by the appellant themselves, therefore, the C&F Agent services are received upto the place of removal. This issue has been considered in the appellant’s own case cited (Supra).

5. Accordingly, I am of the view that the C&F Agent Service is admissible input service in the terms of Rule 2(l) of Cenvate Credit Rules, 2004. Hence, the impugned order is set-aside and the appeal is allowed

(Dictated & Pronounced in the open court)

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