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2016 (9) TMI 1380 - AT - Service TaxCENVAT credit - input services - freight charges incurred for transportation of goods exported - denial on account of nexus - whether the service tax paid on freight charges incurred for transportation of goods up to the port of export is covered under the definition of input services in terms of Rule 2(l) of CCR, 2004? - Held that: - In the case of export transaction where FOB price is the consideration, the goods have to be delivered on board the vessel which means the place of delivery is the port of shipment. Therefore, the place of removal automatically extends up to the port of shipment when the goods are to be delivered on board the vessel. If that is so, the cost of transportation from the factory to the port of shipment will automatically become part of the value of the goods and whatever services have been availed up to that point would become input services - the appellants are legally entitled for the Cenvat credit of service tax paid on GTA services utilized for transportation of the export goods from the factory to the port of shipment - appeal allowed - decided in favor of appellant.
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