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2017 (7) TMI 978 - AT - Central ExciseCENVAT credit - freight outward service - whether the appellant is entitled for cenvat credit on the freight outward service in respect of removal of goods for export? - Held that - the appellant is responsible for delivery of the export goods upto the place of foreign buyer therefore in India the place of removal is the port of export - in case of port of export being a place of removal , all the services upto the export of goods from the port of export shall be treated as input service and the credit is admissible - appeal allowed - decided in favor of appellant.
Issues involved:
Whether the appellant is entitled to cenvat credit on the freight outward service in respect of removal of goods for export. Analysis: The issue in question was whether the appellant could claim cenvat credit on the outward freight service used for transporting goods for export. The appellant argued that since they were responsible for delivering the goods to the foreign buyer at the port of export, the outward freight service up to the port of export should be considered as an input service eligible for credit. They supported their argument by citing various judgments in their favor. On the other hand, the Revenue, represented by the Superintendent (A.R.), relied on a Tribunal decision in a different case to support their position. The Tribunal, after considering both sides' submissions, examined the facts and export documents. It was established that the appellant was indeed responsible for delivering the export goods up to the foreign buyer at the port of export. The Tribunal noted that when the port of export is considered the "place of removal," all services up to the export of goods from that port should be treated as input services eligible for credit. Citing Rule 2(l) of the Cenvat Credit Rules, 2004, the Tribunal concluded that the outward freight service, being an input service up to the port of export, was admissible for credit. Therefore, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant. The judgment was pronounced by Member (Judicial) Shri Ramesh Nair on 28/06/2017.
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