TaxTMI 
TaxTMI 
2016 (1) TMI 519
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....led on service tax paid by them on outward transportation of finished goods, up to the port, which are meant for export, as erroneous. The revenue's contention is that the place of removal is the factory gate of the appellant and not the port, as claimed by the appellant. The CHA charges and wharfing charges rendered by the service providers outside the factory, after the clearance of goods from the factory, was also sought to be considered as ineligible input services" as these services can neither be considered as used in or in relation to manufacture of cars. 2. The Ld. Counsel Sri. S.Muthu Venkataraman, Advocate appearing on behalf of the appellant company contended, interalia, that they paid the freight up to the port and availed cr....
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....ared from the factory are not considered as sale and the sale is said to have been concluded and recognized only when the same is loaded into the vessel and bill of lading is received until which time, appellant continues to be responsible for the cars lying in the port and are treated as "stock in trade" in the books of account as the risk and rewards are envisaged under the sale of goods Act, is not passed on to the buyer as the contract with the foreign buyer is on FOB, CFR and/or CIF basis; that it is well laid out that if the goods are for sale FOB delivery and the property in goods pass to the buyer's place, then that will be the place of removal. 3. The Ld. A.R. reiterated the findings of the adjudicating authority and submitted t....
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....ion of input services as it existed during the period in question which reads as follows : "Input services" means any service (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly , in or in relation to the manufacture of final products and clearance of final products from the place of removal and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement, or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to bu....
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....d that in case of clearance of goods for export by manufacturer /exporter, shipping bill is filed by the manufacturer/ exporter and goods are handed over to the shipping line. After the net export order is issued, it is the responsibility of the shipping line to ship the goods to the foreign buyer , that the exporter having no control over the goods. In such a situation, transfer of property can be said to have taken place at the port where the shipping bill is filed by the Manufacturer / Exporter and place of removal would be this port. Accordingly, the Ministry/CBEC have clarified the eligibility to cenvat credit could be determined accordingly. The above circular of the Board which has been issued recently calling upon the representation....
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.....Dynamic Industries vs CCE, Daman 2012 TIOL - 1514 - CESTAT-AHM The crux of the above and other allied case laws is that 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. Generally it is not intended to make domestically produced goods, when exported to the foreign market, to become uncompetitive, by means of increase in cost. No country wants to export the domestic taxes meant to be levied on domestic consumption of goods and services. Countries either exempt such taxes in respect of goods to be exported including taxes relating to inputs used in the export goods, or there are alternative schemes for providing ....