Cenvat credit on CHA and port services for exports allowed where the place of removal extends to the port area.

Cenvat credit was treated as admissible on CHA and port services used in connection with export of goods. The Tribunal noted that earlier decisions and the applicable Board circular extended the place of removal up to the port area in the export context, so services used up to that point qualified as input services. Reliance on an unrelated decision dealing with a different issue was rejected as misplaced, and the lower authority's denial of credit was found inconsistent with the settled position. Credit on CHA and port services was therefore allowed.

---

---

Issues: Whether cenvat credit was admissible on CHA and port services availed in connection with export of goods.

Analysis: The dispute was limited to the admissibility of credit on CHA and port services used at the port area for export activity. The Tribunal noted that the issue had already been settled by earlier decisions, and that the Board circular extended the place of removal up to the port area in the export context. Once the place of removal is treated as extending beyond the factory gate, services used up to that point fall within the ambit of admissible input services. The contrary reliance on an unrelated decision dealing with a different question was held to be misplaced, and the view taken by the lower authority was found not to accord with the settled position.

Conclusion: Cenvat credit on CHA and port services was held admissible and the denial of credit was set aside in favour of the assessee.

---