Refund of service tax on export transport services upheld where goods moved from factory to port formed part of the export chain.

Refund of service tax on goods transport agency services used to move export goods from the factory to the port was treated as admissible because the transportation formed part of the export chain and the port of export was regarded as the place of removal. The CBEC clarification supported this position, and the argument that the service was availed only by the merchant exporter was rejected. The refund was upheld and the Revenue's challenge failed.

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Issues: Whether refund of service tax paid on goods transport agency service used for transportation of export goods from the factory to the port was admissible, and whether the service could be treated as availed by the merchant exporter instead of the respondent.

Analysis: The respondent asserted that it had paid for the transport service and was therefore liable for the service tax on the GTA service. The CBEC clarification that, in export matters, the port of export is the place of removal supported the view that the service formed part of the export chain. On that basis, the contention that the service was availed only by the merchant exporter was not accepted.

Conclusion: The refund was held admissible and the Revenue's appeal was dismissed.

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