Cenvat credit of tax paid on demurrage charges is available

Advertisement 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 Ap...