TMI Blog2012 (7) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 holding that the credit is admissible - E/S/119/2011 and E/178/2011 - - - Dated:- 11-6-2012 - Dr. Chittaranjan Satapathy, Shri D.N. Panda, JJ. Shri S. Muthuvenkataraman , Advocate, for the Appellants Shri P. Arul, Superintendent (AR) for the Respondent Per Dr. Chittaranjan Satapathy Heard both sides. 2. We find that the issue involved in this case is as to whether service tax paid on CHA services in respect of export of goods can be allowed as credit or not. The issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strued 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 the buyer has to lift the goods delivered to him at the place of manufacturing whereas DDP indicates that the seller has to deliver the goods at the buyers premises after customs clearance and payment of duty. In the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se 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 export the domestic taxes meant to be levied on domestic consumption of goods and services. Each country either exempts such taxes in respect of export goods, including taxes relating to inputs used in the export goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect 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 the credit is admissible. 3. Following the ratio of the aforecited decision of the Tribunal, we set aside the impugned order and allow the present appeal also. The stay petition also stands disposed of accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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