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2015 (5) TMI 982 - AT - Central ExciseDenial of CENVAT Credit - appellant had availed Cenvat credit of service tax paid on the freight charges for outward transportation of the goods cleared for export from the factory - Held that:- Both the lower authorities have confirmed the demand of Cenvat credit on the GTA for period April 2008 –Jun 2008 on the ground that prior to April, 2008 Cenvat Credit on outward transportation was available on the service used for clearances of the goods from the place of removal whereas after April 2008 due to amendment Cenvat credit on outward transportation is admissible only up to place of removal. In the present case, as per the lower authorities the place of removal is the factory gate and therefore credit could not allowed beyond the place of removal i.e. factory gate. The goods have been cleared for export from the place of removal. In case of export, ownership of the goods remains with exporter and therefore all the expenditure for the clearances of the goods up to port is borne by the exporters and in the present case also the export price is CIF therefore place of removal in case of export stand extended up to port. The transportation incurred for clearances of the goods from factory to the port is within the term of "clearances of goods up to the place of removal" therefore GTA is a service in the present case covered under the definition of input service even after amendment vide notification No. 10/2008-CE (N.T.). In this position, I am of the considered view that the Cenvat credit on the outward GTA is admissible. - Impugned order is set aside - Decided in favour of assessee.
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