CENVAT credit on CHA services for exports was admissible where the port or ICD was treated as the place of removal.

CENVAT credit on service tax paid for CHA services used in connection with export of goods was held admissible where the exporter filed the shipping bill and, after Let Export Order, handed the goods to the shipping line without further control. A Central Board circular treated the port, ICD or CFS where the shipping bill is filed as the place of removal for manufacturer-exporters, and credit entitlement was to be determined on that basis. The demand for reversal was therefore not sustainable.

---

---

Issues: Whether CENVAT credit taken on service tax paid for CHA services used in connection with export of goods was admissible.

Analysis: The issue was treated as settled by the Central Board's circular clarifying that, in the case of manufacturer-exporters, the shipping bill is filed by the exporter, goods are handed over to the shipping line after Let Export Order, and the exporter has no control over the goods thereafter. On that basis, the port or ICD or CFS where the shipping bill is filed is to be treated as the place of removal, and eligibility to CENVAT credit is to be determined accordingly.

Conclusion: CENVAT credit on CHA services used for export of goods was admissible and the demand for reversal could not be sustained.

---