C&F agent Service is admissible input service

[CA Bimal Jain]

The CESTAT, Ahmedabad in NITCO LIMITED VERSUS C.C.E. & S.T. –DAMAN - 2022 (7) TMI 12 - CESTAT AHMEDABAD 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 Impugned 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 NITCO LIMITED VERSUS C.C.E. & S.T. –DAMAN - 2022 (7) TMI 12 - CESTAT AHMEDABAD, 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.

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