Exporters allowed CENVAT Credit of all input services up to the Port AIT News Network
NEW DELHI. 1st January 2009  AHMEDABAD. The Manufacturer-Exporters are entitled to avail CENVAT Credit of Service Tax paid on all input services used up to the Port according to a recent ruling of the Customs Excise & Service Tax Tribunal reported by allindiantaxes vide AIT-2009-01-CESTAT wherein it has been held that in case of export ; the place of removal is the Port and all the services used up to the Port are “input services” under CENVAT Credit Rules.
The Tribunal has ruled that where the sale is on FOB/CIF basis, the place of removal has to be the load port only. Further the definition of input services also has been defined to mean any service rendered in relation to outward transportation up to the place of removal. Since, input service includes services rendered for outward transportation up to the place of removal, all the service tax paid to facilitate goods to reach the place of removal has to be eligible for the benefit of CENVAT credit. Further the definition of input service also includes any service used for manufacture directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal. There is no dispute that the CHA services are required to facilitate clearance of final products from the place of removal i.e. the load port (Click here for full text of Ruling AIT-2009-01-CESTAT) Related Story:
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