Place of removal for export clearances allowed Cenvat credit on C&F service tax for a 100% EOU.

Cenvat credit on service tax paid for C & F services used in CHA work for export clearances by a 100% EOU was allowed because the place of removal, in FOB or C & F export situations, was treated as the load port under the Board's circular and earlier Tribunal view. On that basis, the service tax on the impugned C & F services qualified as eligible input service credit, and the disallowance was set aside in favour of the assessee.

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Issues: Whether Cenvat credit was admissible on service tax paid on C & F services used for CHA services in the case of exports by a 100% EOU, having regard to the place of removal.

Analysis: The Tribunal noted that the issue was covered by its earlier decision, which relied on the Board's circular clarifying the place of removal and held that, in the case of C & F exports or FOB exports, the load port would constitute the place of removal. On that basis, service tax paid on C & F services was treated as eligible for credit for a 100% EOU.

Conclusion: Cenvat credit on the impugned C & F services was admissible, and the disallowance was set aside in favour of the assessee.

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