As per the provisions rule 2(l) of the Cenvat Credit Rules, 2004, cenvat credit of service tax paid on GTA /CHA and other services  is available only upto the place of removal.

The term place of removal is not defined in the provisions of Cenvat Credit Rules, 2004, but a reference is taken from the provisions of Section 4 of the Central Excise Act, 1944 in which the term 'place of removal' has been defined.

An issue of availability of cenvat credit of service tax paid on GTA service in case of export has been dealt by the CESTAT in a case, reported in 2008 -TMI - 31092 - CESTAT MUMBAI, in which it was held that:

"From the circular, it is quite clear that in case where the sale is on FOB/ CIF basis, the place of removal has to be the load port only…………..the decision of the Tribunal in M/s Excel Crop Care Ltd.'s case cannot be considered and applied to the cases under consideration………………….."

Credit allowed.

[For full text of judgment - visit   2008 -TMI - 31092 - CESTAT MUMBAI)

Place of removal determines cenvat credit eligibility for GTA services in FOB/CIF export movements to the load port. Whether cenvat credit for service tax on GTA services used to move goods from factory to port turns on the place of removal under the Cenvat Credit Rules, 2004; the tribunal held that for FOB/CIF exports the place of removal is the load port, bringing GTA services up to that point within credit availability.