A 100%EOU while exporting their products pay service tax on port services, CHA service etc. at the port of export. Can they take credit of service tax paid on these services or shall they take the refund route. There is considerable difference of opinion in the legal fraternity and have come across cases where department has issued SCNs to units which had taken cenvat credit against such payments. Is it correct to say that port of export is the place of removal for excisable export goods ? Place of removal defined in Section 4 of CE Act doesn't give a specific answer. If the refund route is to be taken, which notification is applicable - Notification No.17/2009 ST or 41/2012 ST. Kindly clarify
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Hi Raghunatha,
You have a good news. The place of removal for export of goods shall be considered to the port from where the goods have been exported. You may refer to the famous judgement of CCE vs. Tata Coffee Ltd. 2013-TIOL-209-CESTAT-MAD.
Meaning, you may claim Cenvat credit of CHA services, port services, GTA services, courier services, etc. used till such port and claim refund.
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