Order Date: 21 February 2023

Parties: M/s.Shyam Metalics & Energy Ltd. vs. Commissioner Of CGST & Central Excise, Bhubaneswar Commissionerate

Facts – 

• The Appellant, M/s.Shyam Metalics & Energy Ltd. in the course of exports utilizes the services of their Clearing and Forwarding Agent towards Terminal Handling Charges, Documentation charges, etc. These expenses are incurred when the exported goods are transferred from their factory premises to the port of shipment.
• For the Bills raised by the clearing and forwarding agent for rendering the services, the Appellant has availed the Cenvat Credit of Rs.2,86,813/-.
• A show Cause Notice was issued demanding a reversal of the Cenvat Credit on the ground that the services that have been rendered are beyond the place of removal.

Issue –

• Whether the appellant is eligible for Cenvat credit for the services rendered by the agent in the movement of goods?

Orders – 

• The Tribunal stated that the port of shipment is nothing but the extended location of the manufacturing unit only. Shipping port will also fall within the definition of ‘Place of Removal’ as held by the Hon’ble High Court in the case of the Inductotherm India Pvt Ltd – Gujarat High Court. Therefore, all expenses incurred from the factory gate up to the port of Shipment would also be allowed for Cenvat Credit.
• Since the material facts are the same in the present case, it was held that the appellant is eligible for the Cenvat Credit taken by them. In view of the foregoing, the Appeal is allowed with consequential relief.