CENVAT credit on export-related services upheld where the port was treated as the place of removal.

CENVAT credit was held admissible on port service, storage and warehousing, cargo handling, CHA, export freight and outward courier services used for export of goods. The controlling principle applied was that, in exports, the port constitutes the place of removal, so services used up to that point cannot be denied credit merely because they were rendered after the factory gate. On that basis, the denial of credit was unsustainable and the amount adjusted against the sanctioned rebate claim was directed to be refunded to the assessee.

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Issues: Whether CENVAT credit was admissible on input services such as port service, storage and warehousing service, cargo handling service, CHA service, export freight charges and outward courier charges used in connection with export of goods, where the dispute turned on whether the port constituted the place of removal.

Analysis: The services in question were held to be eligible for CENVAT credit in relation to export of goods. The controlling principle applied was that, in the case of export of goods, the port is the place of removal, and therefore services used up to that point cannot be denied credit merely on the basis that they were rendered after the factory gate. Following the binding precedent relied upon in the order, the denial of credit was not sustainable. The direction to refund the amount adjusted against the appellant's sanctioned rebate claim flowed from the success of the appeal.

Conclusion: The credit was held admissible and the appeal was allowed in favour of the assessee.

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