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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, J.
Ucal Fuel System Ltd. -Appellant
Versus
Commissioner of Central Excise, Chennai -Respondent
FINAL ORDER NO. 519 OF 2011 APPEAL NO. E/755 OF 2010
Decided On : 12-04-2011
K. Mani,C. Dhanasekaran
1. CENVAT credit of service tax of Rs. 1,28,914/- has been disallowed on the ground that the assessees did not mention the nature of the taxable services in any of the documents on the basis of which credit has been taken.
2. I have heard both sides. I find that the show-cause notice itself proceeds on the basis that the bills raised by the service provider, M/s. UCAL Exports P. Ltd. were for service charges towards preparation of documents and other export related services for exportation of the assessee’s final products, namely carburretor and parts. I have also perused some of the documents and find that the bills of M/s. UCAL Exports Pvt. Ltd. are towards service charges for preparing pre-shipment and post-shipment documents in respect of export of carburretors and parts. Such services relate to preparation of export related documents and therefore the service rendered has a nexus with the business of the manufacture of the assessee’s final product and is hence in the nature of business auxiliary service. The assessees are therefore entitled to avail CENVAT credit of the service tax paid under the above category of service. I, therefore, set aside the impugned order and allow the appeal.
