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2016 (6) TMI 914 - CESTAT CHENNAI

2016 (6) TMI 914 - CESTAT CHENNAI - TMI - Denial of cenvat credit of service tax paid on the input service viz. "Custom House Agent Services" availed by the respondent in relation to export of goods. - Held that:- these services were utilised for purpose of export of final products and exporters could not do business without them and hence service tax paid on these services availed till goods reached port was admissible and that the input service cannot be given restrictive meaning in view of me .....

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input service viz. "Custom House Agent Services" availed by the respondent in relation to export of goods. 2. The brief facts of the case are that M/s.L.G. Balakrishnan & Bros Ltd., (Unit-I), the respondent herein, are engaged in the manufacturer of Chains and Sprockets and are registered with service tax authorities for providing various taxable services. It was noticed by the department that respondent had availed the ineligible cenvat credit on input services based on the invoi .....

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he CCR 2004. Upon adjudication of the notice, the learned adjudicating authority confirmed the proposals made in the SCN. On appeal, the learned Commissioner (Appeals) set aside the OIO and allowed the appeal of the respondent. Hence the present appeal by Revenue. 3. Shri L. Paneerselvam, A.C (A.R) appearing on behalf of Revenue reiterated the grounds of appeal and the OIO. He submits that CHA service was not an eligible "input service" in terms of Rule 2(l) of CCR. The said service wa .....

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favour of the respondent in view of several judicial pronouncements of Hon'ble High Court and Tribunal. She submits that CHA services were availed for exporting the goods. The place of removal in case of export of goods is port of shipment. The said CHA service having been utilized before loading of goods in ship for export, is an input service eligible for cenvat credit. She relied on the following case laws to support her case :- (i) Commissioner Vs Dynamic Industries Ltd. 2014 (35) STR 67 .....

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l in the case of CCE Raipur Vs Bhilai Engineering Corporation Ltd. (supra) has held that place of removal in case of export goods is the port of shipment and CHA services utilized before the goods were loaded onto the ship and the cenvat credit of tax paid on CHA service is admissible. The relevant paragraph of the Tribunal's decision (supra) is reproduced as under :- "3. None appeared on behalf of the respondent and therefore we proceed to decide the case on merits and after considerin .....

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se of goods exported is the factory gate but has not given any basis for this assertion. The fact is that the ownership of the goods and the risks related thereto remain with the respondent at least up to the loading of the goods on the ship at the port of shipment. Section 4 of the Central Excise Act, 1944 inter alia states that the place of removal is any other place from where the excisable goods are to be sold after the clearance from the factory . Thus, the place of removal is in case of ex .....

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