On this issue, CESTAT held that:

"I find that the CHA and Surveyors' services are utilized at the time of the export of the goods. The respondents continue to remain the owner of the goods in question till the same are exported. As such, it can be reasonably concluded that the place of removal in case of exported goods is the port area. The above interpretation is also Supported by Para 8.2 of the Board's Circular No. 97/8/2007-ST, dated 23-8-2007 laying down that where sale takes place at the destination point and the ownership of the goods remain with the seller till the delivery of the goods, the place of removal would get extended to the destination point and the credit of the service tax paid on the transportation up to such place of sale would be admissible.

Inasmuch as in the present case also, the ownership of the goods remain with the seller till the port area, it can be safely held that all the services availed by the exporter till the port area are required to be considered as input service inasmuch as the same are clearly related to the business activities.

Activities relating to business are covered by the definition of input service and admittedly CHA and Surveyors' services are relating to the export business.

(For full text of judgment - visit 2008 -TMI - 30898 - CESTAT, AHMEDABAD)

Input service credit confirmed where CHA and surveyor services used to the port relate directly to export transactions. Credit for service tax on CHA and surveyor services is admissible where those services are utilized up to the port area and the seller retains ownership until delivery at the port; such services are integrally connected to the export business and qualify as input service, consistent with administrative guidance extending the place of removal to the destination where ownership remains with the seller.