2013 (2) TMI 137

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.... tax paid on 'Fumigation Charges' and 'Testing and Inspection Agency Charges'. He further states that these services are included in the list of services which are exempted for use in connection with export of goods under Notification No.17/2009-ST, dated 07.07.2009. After taking into consideration the submissions made by the learned SDR and on perusal of case records, I find that the lower appellate authority has allowed credit of service tax paid on 'CHA services' as well as on 'Banking and Financial Services' whereas he has denied the credit of service tax on service tax paid on 'Fumigation Charges' and 'Testing and Inspection Agency Charges' though all the four services have been used in export of goods. 3. I find that the issue stan....

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....e decisions have construed place of removal to be the point of export. However, it is a fact that the place of removal is the factory gate and the port area is the place where the goods have been delivered for export. The place of delivery cannot be the place of removal. Similarly, the ownership of the goods under export depends on the type of contract between the buyer and the seller. As is well known, the 13 INCOTERMS are used for specifying the terms of contract beginning from EXW to DDP with 11 other INCOTERMS in between. EXW indicates that the buyer has to lift the goods delivered to him at the place of manufacturing whereas DDP indicates that the seller has to deliver the goods at the buyers premises after customs clearance and paymen....

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....uring activity is over and in the course of despatch of the goods in the course of export. However, I am of the considered view that for the reasons stated below, it is not necessary to deal in detail with these decisions cited by both sides.     5. It is the undisputed policy of the Government not to burden the export goods with domestic taxes as has been noted in various decisions of the Tribunal. The reasons are obvious. We do not want to make domestically produced goods, when exported to the foreign market, to become uncompetitive. Secondly, no country wants to export the domestic taxes meant to be levied on domestic consumption of goods and services. Each country either exempts such taxes in respect of export goods, i....