2018 (5) TMI 477 - AT - Central Excise

CENVAT credit - input services - place of removal - whether the appellant is entitled for cenvat credit on CHA service used for export of goods? - Held that - In case of export of goods the ownership of goods remained with the exporter till it is cleared for export from port of export, therefore in case of export, the port of export is the place of removal - CHA service which is used for export of goods is well within the place of removal, hence the credit is admissible - appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether the appellant is entitled to cenvat credit on CHA service used for export of goods.

Analysis:
The issue in this case revolves around the entitlement of the appellant to cenvat credit on CHA service used for exporting goods. The Revenue contends that cenvat credit is only available on input services used up to the place of removal, which they argue occurs after the goods are cleared from the factory. However, the appellant, represented by Ms. Padmavati Patil, argues that various judgments have allowed services related to export for cenvat credit, citing specific cases to support her stance.

Ms. Patil relies on a series of judgments, including Commissioner Vs. Dynamic Industries Ltd., Kuntal Granites Ltd. Vs. Commissioner of Central Excise, and others, to bolster her argument. On the other hand, Shri H.M. Dixit, representing the Revenue, reiterates the findings of the impugned order, emphasizing the limitation on cenvat credit up to the place of removal.

Upon careful consideration of both sides' submissions, the tribunal concludes that the issue of cenvat credit for CHA service used in exporting goods is no longer in dispute. The tribunal reasons that in the case of export, the ownership of goods remains with the exporter until clearance for export from the port, making the port of export the place of removal. As the CHA service is utilized within the place of removal for exporting goods, the tribunal deems the credit admissible. Citing the various judgments presented by Ms. Patil, the tribunal finds the issue settled and sets aside the impugned order, thereby allowing the appeal.

In conclusion, the tribunal's decision on the admissibility of cenvat credit for CHA service used in exporting goods is based on the understanding that the port of export constitutes the place of removal in such scenarios. The reliance on precedent judgments supports the tribunal's ruling, ultimately leading to the allowance of the appeal and the setting aside of the impugned order.