TMI Blog2011 (10) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... various taxable services provided to an exporter. CHA services are also exempted under Sl. No.11 to the Table annexed to the said Notification. The present cases have arisen apparently in the absence of exemption notification for the previous period. The only way freeing export goods from domestic taxes can be ensured for the period relevant to these appeals is to allow credit of the service tax paid on the CHA and other services in respect of the export consignments so that the exporter would be compensated either by utilization of such credit for payment of other taxes or by taking refund when such utilization is not possible - Appeal is allowed - E/81/2011, E/419 to 426/2011, E/62 & 63/2011, E/656/2010, E/503/2010 - 1193-1209/2011 - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hmd.) - Order dated 3.9.2007 In this case, it has been held that credit is not allowable as CHA services in respect of export do not have nexus with the manufacture and clearance from the factory and hence the same cannot be input service. (3) CCE, Rajkot Vs. Rolex Rings P. Ltd. - 2008 (230) ELT 569 (Tri. - Ahmd.) - Order dated 29.2.2008 In this case, it has been held that CHA and surveyor services are utilized at the time of export of the goods and since the assessee continues to remain the owner of the goods in question till the same are exported, it can be reasonably concluded that the place of removal is the Port area and such services are required to be considered as input service as the same are related to business activity. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Special Economic Zone Ltd. - 2011 (21) STR 361 (Guj.) - Order dated 5.5.2010 In this case, the Hon'ble High Court has held that since Order-in-Appeal earlier allowing credit on CHA service etc. for a different period was not challenged and the same has attained finality, admissibility of credit on said services for a future period cannot be reopened to take different view. (10) Mileen Engineers Vs. CCE, Mumbai - 2010 (20) STR 668 (Tri. - Mumbai.) - Order dated 5.8.2010 In this case, credit in respect of service tax paid on CHA services has been allowed on a concession by the departmental representative. (11) CCE ST (LTU), Bangalore Vs. M/s. ABB Ltd. Vadodara - 2011 (23) STR 97 (Kar.) In this case, it has been held that input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of transport services placing reliance on the specific phrase relating to such service in the definition of input service and said nothing about other services like CHA service. Some of the decisions have construed place of removal to be the point of export. However, it is a fact that the place of removal is the factory gate and the port area is the place where the goods have been delivered for export. The place of delivery cannot be the place of removal. Similarly, the ownership of the goods under export depends on the type of contract between the buyer and the seller. As is well known, the 13 "INCOTERMS" are used for specifying the terms of contract beginning from "EXW" to "DDP" with 11 other INCOTERMS in between. EXW indicates that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e actual place of delivery i.e. the port area, and the activities relating to business being stretched to cover activities like CHA service which takes place much after the manufacturing activity is over and in the course of despatch of the goods in the course of export. However, I am of the considered view that for the reasons stated below, it is not necessary to deal in detail with these decisions cited by both sides. 5. 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. We do not want to make domestically produced goods, when exported to the foreign market, to become uncompetitive. Secondly, no country wants to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the previous period. The only way freeing export goods from domestic taxes can be ensured for the period relevant to these appeals is to allow credit of the service tax paid on the CHA and other services in respect of the export consignments so that the exporter would be compensated either by utilization of such credit for payment of other taxes or by taking refund when such utilization is not possible. Accordingly, the impugned orders allowing such credit in respect of cases where the Department is in appeal are upheld and consequently, the departmental appeals are dismissed. In respect of one appeal filed by the assessee-appellant where the credit has been denied, the impugned order is set aside and the appeal is allowed holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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