Place of Removal in Notification No. 41/2012-ST

The divisions falling under Central Excise Commissioner ate; Ludhiana (Punjab) has started issuing show cause notices to the exporters who are claiming refund claim under Para 3 of Notification No. 41/2012 ST dated 29.06.2012 in respect of services utilized used in the export of excisable goods. The said notification provides refund of service tax paid on specified services used in exports of goods beyond place of removal.

 The department is alleging that in case of export transaction where FOB price is the consideration the goods have to be delivered on the vessel which means the place of delivery is the port of shipment. Therefore, the services availed upto that point would become service availed upto the place of removal and not service availed beyond place of removal. As per Section 4(3)(c)(iii) stipulates the “any other place or premises from where excisable goods are to be sold after their clearance from the factory

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