TaxTMI 
TaxTMI 
2010 (5) TMI 699
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....2/08) Dem/C Ex./LKO. Div.II/08 dated 31-12-08, passed by the Assistant Commissioner Central Excise, Div-II, Lucknow (hereinafter referred to as 'the Respondent') disallowing Credit availed by the Appellant on Service Tax paid on outward freight upto port of export. 2. The appellant is engaged in the manufacture of Polyester Staple Fibre (PSF) and Tow falling under Chapter 55 of the Central Excise Tariff Act, 1985 and is availing Cenvat credit under Cenvat Credit Rules, 2002/2004. They have availed credit of service tax paid on outward freight upto port from where goods are exported and Show Cause Notice was issued for denying the said credit. The Assistant Commissioner, Central Excise, Div-II, Lucknow, vide the impugned order has dis-all....
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....ey were taking credit on the said service. The Department noticed this discrepancy during course of audit, thus they have intentionally suppressed the fact from the Department and proviso to Section 11A(1) of the Central Excise Act, 1944 is invocable for recovery of dues. 3. Being aggrieved with the aforesaid Order, the Appellants filed appeal, wherein appellants contended that : (i) Under Section 4(3)(c)(iii) of the Central Excise Act, 1944, place of removal means ".....or any other place or promises from where the excisable goods are to be sold after their clearance from the factory....." In case of export, goods can leave the country only when they leave the port of export this is similar to selling goods from depot or consignment ....
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....to the Appellant's case and hence, relevant, (iii) Hon'ble CESTAT in case of CCE, Rajkot v. Rolex Rings P. Ltd. [2008 (230) E.L.T. 569 (Tri.-Ahmed.) has referred CBEC Circular No 97/8/2007-S.T., dated 23-8-2007 and said that :- "Exporter continue to remain owner of goods in question till same are exported since place of removal of goods in export is port area, services availed by the exporter till port are input service in as much same are related to business activities.'' In view of the above, they are entitled for Cenvat credit of service tax paid on transportation of goods upto the port of export which is a place of removal. (iv) As they are filing monthly ER-1 returns including input/input service credit register, from time ....
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....ditional Commissioner, Central Excise & Service Tax, Large Taxpayer Unit, Mumbai in case of their Dahej, Dist :- Bharuch unit has allowed credit availed on service tax paid on GTA service which are for outward transportation in case of export goods i. e. upto port of export. Discussion & Findings 6. I have carefully considered the grounds of appeal, written submission made by the appellant, the arguments advanced during personal hearing and also the provisions of law governing the subject matter. The main issue involved in the case is whether the appellant is eligible to avail CENVAT credit on service tax paid on GTA service which are for outward transportation in case of export goods, upto port of export i. e. whether in case of expo....