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TMI Blog2016 (1) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... nded to make domestically produced goods, when exported to the foreign market, to become uncompetitive, by means of increase in cost. No country wants to export the domestic taxes meant to be levied on domestic consumption of goods and services. Countries either exempt such taxes in respect of goods to be exported including taxes relating to inputs used in the export goods, or there are alternative schemes for providing rebate, drawback of duties suffered by export goods. India is no exception as we also have similar schemes. There are also schemes making available duty-free goods and services for export production. In the event of the benefit of cenvat credit being denied, it would contribute to inescapable rise in costs, making exports un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant and not the port, as claimed by the appellant. The CHA charges and wharfing charges rendered by the service providers outside the factory, after the clearance of goods from the factory, was also sought to be considered as ineligible input services as these services can neither be considered as used in or in relation to manufacture of cars. 2. The Ld. Counsel Sri. S.Muthu Venkataraman, Advocate appearing on behalf of the appellant company contended, interalia, that they paid the freight up to the port and availed credit in respect of the same, that there is no incorrectness as to the availment of credit and the same is availed in accordance with the provisions of cenvat credit rules 2004; that the appellant clarified tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt continues to be responsible for the cars lying in the port and are treated as stock in trade in the books of account as the risk and rewards are envisaged under the sale of goods Act, is not passed on to the buyer as the contract with the foreign buyer is on FOB, CFR and/or CIF basis; that it is well laid out that if the goods are for sale FOB delivery and the property in goods pass to the buyer s place, then that will be the place of removal. 3. The Ld. A.R. reiterated the findings of the adjudicating authority and submitted that, a. The appellants are only the manufacturers, and not provider of output service to be entitled to the cenvat credit on GTA, CHA and wharfage services. b. The services in question have not played ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used by the manufacturer, whether directly or indirectly , in or in relation to the manufacture of final products and clearance of final products from the place of removal and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement, or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the shipping line to ship the goods to the foreign buyer , that the exporter having no control over the goods. In such a situation, transfer of property can be said to have taken place at the port where the shipping bill is filed by the Manufacturer / Exporter and place of removal would be this port. Accordingly, the Ministry/CBEC have clarified the eligibility to cenvat credit could be determined accordingly. The above circular of the Board which has been issued recently calling upon the representations from the Trade clearly establishes that so far as the Ministry/Exporter is concerned, the port is the place of removal for exports. In the instant case, the fact that the appellants are manufacturer/Exporter is not denied. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cisions of the Tribunal. The reasons are obvious. Generally it is not intended to make domestically produced goods, when exported to the foreign market, to become uncompetitive, by means of increase in cost. No country wants to export the domestic taxes meant to be levied on domestic consumption of goods and services. Countries either exempt such taxes in respect of goods to be exported including taxes relating to inputs used in the export goods, or there are alternative schemes for providing rebate, drawback of duties suffered by export goods. India is no exception as we also have similar schemes. There are also schemes making available duty-free goods and services for export production. In the event of the benefit of cenvat credit being d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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