Place of removal for export goods extended to the port, supporting waiver of pre-deposit for freight-related duty dispute.

For export goods cleared from the factory on FOR basis, freight incurred up to the port was treated as part of the removal chain for the purpose of interim relief, because the goods were undisputedly meant for export and prior Tribunal views, read with the statutory definition of "place of removal" under the Central Excise Act, extended that concept up to presentation of export documents to Customs at the port. On that basis, the appellant made out a prima facie case for waiver of pre-deposit of duty and penalty, and the stay application was allowed.

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Issues: Whether, in respect of export goods cleared from the factory on FOR basis, the appellant had made out a prima facie case for waiver of pre-deposit of service tax, duty and penalty on freight incurred for transportation of the goods up to the port.

Analysis: The Tribunal noted that there was no dispute that the goods were removed for export. It relied on the understanding of the place of removal in relation to export goods and referred to the definition in Section 4(3)(c) of the Central Excise Act, 1944, along with the view taken in prior Tribunal decisions that the place of removal, in such a situation, extends up to the point where export documents are presented to Customs at the port. On that basis, the freight upto the port could not be treated as outside the relevant removal chain for the purpose of the interim relief sought.

Conclusion: The appellant established a prima facie case for waiver of the entire pre-deposit of duty and penalty, and the stay application was allowed.

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