Federal Express Corporation Vs Commissioner of Central GST & C.Ex (CESTAT Mumbai)
CESTAT Mumbai has held that demurrage was part of handling of import and export shipments of the assessee and therefore Cenvat credit of tax paid on such demurrage charges would be available. The demurrage charges were paid by the C&F service provider on behalf of the assessee and billed to him as out of pocket expenses. The Tribunal also observed that Customs Clearance Service also qualified to be input service covered by Cenvat Rule 2(l).
FULL TEXT OF THE CESTAT JUDGEMENT
The instant Appeal has been filed against the impugned order dated 23.02.2018 passed by the Commissioner of CGST & Central Excise, Thane Rural, Mumbai in Order-in-Appeal No. CD/TR(Appeals)/ ME/200/2007-18. The issues to be decided in this appeal is whether the Appellant is eligible for Cenvat credit of Rs.12,68,968/- under Rule 14 of Cenvat Credit Rules, 2004 and also whether the Appellant is liable for penalty under Section 78 of the Finance Act, 1994 in respect of the credit availed on admissible input services?
2. The facts giving rise to the filing of the Appeal are stated in brief as follows. The Appellant i.e. Federal Express Corporation is into the business of Transport of Goods by Air/Road, Courier Agency Services, Management Consultancy Services and Online Information Data Base Access & Retrieval Services. During the course of audit it was observed that during the period from April, 2007 to March, 2008 they had wrongly availed and utilised cenvat credit total amounting to Rs.12,68,968/- on ineligible services by contravening the provisions of Rule 9taxguru.in(2) of the Cenvat Credit Rules, 2004. The details of the ineligible services are as under:-
