2012 (12) TMI 926 - AT - Central Excise

CENVAT CRedit - Whether the respondent is eligible for cenvat credit of service tax paid on services used exclusively for fulfilling various procedures/ requirements for export of goods - Held that - there are several decisions of the Tribunal taking a view that in the case of FOB exports the place of removal is the Port and therefore credit of service tax paid on CHA Services/ Port services are admissible - Following decision of Meghachem Industries 2011 (4) TMI 221 - CESTAT AHMEDABAD and Fourrts (I) Laboratories 2009 (10) TMI 175 - CESTAT CHENNAI - Decided against Revenue.

Summary

Issues involved:
Whether the respondent is eligible for cenvat credit of service tax paid on services used exclusively for export of goods.

Analysis:
The issue in this case revolves around the eligibility of the respondent for cenvat credit of service tax paid on various services used exclusively for fulfilling export procedures. The services in question include CHA Services, Terminal Handling Charges, Bill of Lading charges, Agency Charges, documents charges, and Shipping Bills charges. The lower authorities allowed the cenvat credit, citing precedents like the cases of Meghachem Industries and Fourrts (I) Laboratories. However, the Revenue appealed, arguing that the credit is not admissible as the services were provided at the Port, while the place of removal is the factory gate.

Upon review of the records and arguments from both sides, it was found that the issue is well-settled, with multiple Tribunal decisions establishing that for FOB exports, the Port constitutes the place of removal. Consequently, cenvat credit for service tax paid on CHA Services and Port services is deemed admissible. The decisions relied upon by the lower authorities also supported this stance. Therefore, the appeal filed by the Revenue was deemed meritless and subsequently rejected.

This judgment clarifies the interpretation of the place of removal in the context of FOB exports and affirms the admissibility of cenvat credit for service tax paid on services directly related to export procedures. The decision aligns with established Tribunal precedents and provides clarity on the eligibility of such credits, reinforcing the position that services provided at the Port for export purposes qualify for cenvat credit despite the place of removal being the factory gate.