Cenvat credit on Customs House Agent services upheld where the port was treated as the place of removal in exports.

Cenvat credit was held admissible on service tax paid for Customs House Agent services used in export transactions where the port was treated as the place of removal. The analysis relied on the Board's circular permitting credit on services up to the place of sale when sale and transfer of property in the goods occur at that place, and on the Tribunal's earlier view that in FOB/CIS exports the port constitutes the place of removal. On the facts found, the CHA services formed part of the eligible credit chain, and the Revenue's challenge failed.

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Issues: Whether Cenvat credit of service tax paid on Customs House Agent services was admissible for exports where the place of removal was the port.

Analysis: The respondent's claim was supported by the Board's circular clarifying that credit of service tax paid on transportation of goods up to the place of sale is admissible where the claimant establishes that sale and transfer of property in the goods occurred at that place. The Tribunal also followed its earlier view that, in FOB/CIS export transactions, the port constitutes the place of removal. On the facts found by the appellate authority, the CHA services were treated as falling within the admissible credit chain.

Conclusion: Cenvat credit on the CHA service was admissible and the Revenue's challenge failed.

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