2017 (1) TMI 591

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..... High Court held that though there is no express inclusion of such service in the definition of input service in Rule 2 (l) of Central Credit Rules, 2004, it can be included therein holding that in case of export of final products, the place of removal would be the port of shipment of the final product and not factory gate and therefore, the manufacturer would be entitled to cenvat credit towards cargo handling as input service under Central Credit Rules, 2004 - the appellant is entitled to avail the cenvat credit on the input service in respect of the services used in relation to clearance of the final product upto the port of shipment. Appeal allowed - credit allowed - decided in favor of appellant.
Shri P. K. Choudhary, Judicial Member .....

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..... #39;ble Gujarat High Court held that though there is no express inclusion of such service in the definition of input service in Rule 2 (l) of Central Credit Rules, 2004, it can be included therein holding that in case of export of final products, the place of removal would be the port of shipment of the final product and not factory gate and therefore, the manufacturer would be entitled to cenvat credit towards cargo handling as input service under Central Credit Rules, 2004. The relevant portion of the said decision is reproduced below : "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, .....

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..... e, etc. from where it would be ultimately removed, such service is covered in the expression outward transportation up to the place of removal since such place other than factory gate would be the place of removal. 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(l) 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 services of cargo handling used by the manufacturer for transportation of the finished goods from the place .....

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