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2019 (10) TMI 1325 - AT - Service TaxCENVAT Credit - input services - business auxiliary service - banking and financial services - transportation by road and rail services - services availed by the appellant for export of the goods but beyond the place of removal - HELD THAT - The appellant is being an exporter has availed these services for export of goods, therefore, broadly on the services availed by the appellant is entitled to avail Cenvat credit on the services in question. Further, as per Section 2(18) of the Customs Act, 1962 which describes export. As per Section 2(18) of the Act, export means taking goods out of India to place of outside India which means that in case of export of goods, if goods are within the territorial jurisdiction of India, the same cannot be said that the export has taken place. In that circumstances, for export the goods are required to be taken outside India, the same is the place of removal. The appellant is entitled to avail Cenvat credit of transportation charges also upto the port from where the goods taken outside India - credit allowed - appeal Allowed - decided in favor of appellant.
Issues:
Appeal against denial of Cenvat credit on business auxiliary service, banking and financial services, and transportation by road and rail services for export of goods beyond the place of removal. Analysis: The appellant, a manufacturer and exporter of goods, appealed against the denial of Cenvat credit on services availed beyond the place of removal for export. The adjudicating authority initially dropped the proceedings, but the Ld. Commissioner (Appeal) upheld the denial of Cenvat credit. The appellant contended that as an exporter, they availed services up to the port of export and were entitled to Cenvat credit as per CBEC Circular No. 999/06/2015-CX, dated 28-2-2015. The Ld. AR argued that transportation services beyond the ICD were not eligible for Cenvat credit, and for other services, only a proportionate credit should be allowed. The appellate tribunal considered the submissions and held that as an exporter, the appellant was entitled to avail Cenvat credit on the services in question. The issue to be decided was whether the place where goods are taken outside India constitutes the place of removal. Referring to the definition of export under Section 2(18) of the Customs Act, 1962, which states that goods must be taken outside India for export to occur, the tribunal concluded that until goods reach the port for export outside India, the place of removal is not reached. Therefore, the appellant was entitled to Cenvat credit on transportation charges up to the port of export. The impugned order was set aside, and the appeal was allowed with consequential relief.
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