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2016 (1) TMI 519 - AT - Central ExciseCenvat Credit - service tax paid on outward transportation of finished goods, up to the port, which are meant for export - place of removal - The CHA charges and wharfing charges rendered by the service providers outside the factory, after the clearance of goods from the factory, was also sought to be considered as ineligible input services” as these services can neither be considered as used in or in relation to manufacture of cars. Held that:- it is the undisputed policy of the Government not to burden the export goods with domestic taxes as has been noted in various decisions of the Tribunal. The reasons are obvious. Generally it is not intended to make domestically produced goods, when exported to the foreign market, to become uncompetitive, by means of increase in cost. No country wants to export the domestic taxes meant to be levied on domestic consumption of goods and services. Countries either exempt such taxes in respect of goods to be exported including taxes relating to inputs used in the export goods, or there are alternative schemes for providing rebate, drawback of duties suffered by export goods. India is no exception as we also have similar schemes. There are also schemes making available duty-free goods and services for export production. In the event of the benefit of cenvat credit being denied, it would contribute to inescapable rise in costs, making exports uncompetitive in the global market. In view of the settled legal position and in view of the above case laws and the Circular, we are of the view that Port is to be construed as the “place of removal” for the purpose of exports. As regards customs house agent service and wharfage charges, we are of the view that the same are eligible for cenvat credit in view of the nexus in existence between the goods manufactured and the services under dispute which are essential for export, the same is qualified for credit. Having decided that the place of removal is the Port, we hold that the appellants are eligible for cenvat credit on GTA, CHA and wharfage charges. - Credit allowed. - Decided in favor of assessee.
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