Input Services, Place of Removal and Cenvat Credit for exports

[Vartik Choksi]

We are manufactures exporters. We have taken the Cenvat Crdit of CHA, Port for the goods sold on FOB in FY 2011-12. During the course of audit the dept has issued SCN that after 1-4-2008 the said Cenvat Credit credit would not be available as the definition of Rule 2(l) changed to 'clearance of final products, upto the place of removal'. We have mentioned all those decisions which were given in the article of Dr. Sanjiv Agarwal (dated 31-3-2014) before AC, Excise. However they simply denied saying that the law changed from 1-4-2008. OIO was issued against us. Kindly throw your views and any decisions which are after the period from 1-4-2008 (post change in definition)

AI Summary

Manufacturers-Exporters Urged to Appeal Denial of Cenvat Credit; Port of Export Considered 'Place of Removal' Under Rule Change Manufacturers-exporters faced a denial of Cenvat Credit for services related to exports due to a rule change effective April 1, 2008, which defined the 'place of removal' as the point of clearance of final products. Despite citing previous decisions, authorities issued an Order-in-Original against them. Forum participants advised appealing to the Tribunal, citing cases like Rolex Rings P. Ltd. and Modern Profiles, which support the interpretation that the port of export is the place of removal, thus qualifying related services for Cenvat Credit. The consensus was to file an appeal to challenge the order based on these precedents.