Place of removal and Cenvat credit on GTA, CHA and wharfage services secured interim stay of recovery.

Input tax credit on GTA, CHA and wharfage services used for moving goods from the factory to the port and clearing them at the port was examined against the Board's clarification and the competing view that outward transport after factory clearance was not a Cenvatable service. The assessee's reliance on the port as the place of removal was found not to be prima facie rebutted at that stage, and the Revenue's cited Tribunal ruling had lost finality because the matter was pending before the High Court and a Larger Bench. On that basis, a prima facie case for interim relief was made out, and waiver of pre-deposit with stay of recovery was granted.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in respect of the service tax and penalties demanded on GTA, CHA and wharfage services used for movement of goods from the factory to the port and for clearance at the port.

Analysis: The claim for credit was examined in the light of the Board's clarification and the competing view that outward transportation after clearance from the factory was not a Cenvatable service. The order notes that the assessee's reliance on the concept of the place of removal being the port could not be prima facie rebutted at this stage. It was also noticed that the earlier Tribunal decision cited by the Revenue had lost finality in view of the appeal before the High Court and that the issue was pending before a Larger Bench.

Conclusion: The appellants made out a prima facie case for interim relief, and waiver of pre-deposit with stay of recovery was granted.

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