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TMI Blog2024 (8) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of its business, the respondent received Input Service Credit from its unit at Vizag relating to services received for the purposes of export of the finished goods, such as, port terminal handling charges, siding charges, cargo handling charges pertaining to "Port Services" provided by M/s Visakhapatnam Port Trust. The cenvat credit of service tax so availed was utilized for payment of Central Excise duty on clearance of finished goods. 2.1 During the course of audit, it was observed that the export related services received and distributed by ISD to the respondent do not have any nexus with the manufacturing activities of their final product and are used beyond the place of removal. As such, it was observed that the said servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace of removal" on the ground that the port from where the export is taking place is not the 'place of removal'. 8. This very issue was before the Hon. Gujarat High Court in the case of CCE v. Inductotherm India Pvt. Ltd.- 2014 (36) STR 994 (Gujarat High Court). The Hon'ble High Court has held as under:- 22. The question that begs the decision is as to whether cargo handling services can be said to have been used in or in relation to manufacture and clearance of final product upto the place of removal, which is port. Admittedly, there is no express inclusion of cargo handling service in the definition of 'input service'. However, in light of the decisions rendered in this area, such interpretation can be made holding that in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. It had been in clear terms held that outward transport service used by the manufacturer for transportation of finished goods from the place of removal up to the premises of the purchaser is covered within the definition of 'input service' provided in rule 2(1) of the Cenvat Credit Rules. Taking this analogy further, the cargo handling service is availed essentially for the purpose of exporting the goods and in such case, the O/TAXAP/22/2014 ORDER services of cargo handling used by the manufacturer for transportation of the finished goods from the place of removal shall have to be essentially the port from where goods are actually taken out of the country. [Emphasis supplied] 9. Similar issue had come up before this Bench in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all of them have been rendered in the port for export of goods. 12. By following the decision of the Hon'ble High Court, we conclude that the appellant will be entitled to CENVAT Credit. Accordingly, the impugned orders are set aside and appeals are allowed. [Emphasis supplied] 10. In the case of Tinplate Company of India Ltd. v. Commissioner 2020 (12) TMI 846 CSTAT Kolkata, the Hon'ble Bench has held as under:- 10.2 In the case of Commissioner Vs. Dynamic Industries Ltd., 2014 (307) ELT 15 (Guj), also the Hon'ble Gujarat High Court has held that where exports are on FOB basis, place of removal is the port and not factory gate and hence since the impugned CHA, shipping agent and container services were utilised for purposes of exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions we hold that the appellant is entitled to the cenvat credit of the said services as "input service" within the meaning of Rule 2(l)(ii) of the Cenvat Credit Rules. [Emphasis supplied] 11. We find from the above decisions that the issue on hand is squarely covered. Accordingly, following the ratio laid down in the above decisions, we dismiss the Appeal filed by the Revenue on merits. 12. We also find force in the Respondent's argument that the Show Cause Notice for the period 2008 to March 2012 was issued on 3rd May 2013, and hence the same is required to be treated as time barred. Since the fact of taking the Cenvat Credit on a monthly basis on account of such ISD invoices was very much reflected in the ER-1, the Department cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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