2015 (3) TMI 1160 - AT - Service Tax

Entitlement for refund claim - Courier service, storage and warehousing service and CHA service - Manufacture and export of readymade garments - Service tax paid on taxable services utilized in business of export - Entitled for exemption under Notification No. 41/2007-ST dated 6.10.2007 - Services are specified service availed by the appellant and paid service tax thereon to the service provider - Held that - the appellant is entitled to refunds of Service Tax as claimed by them in all the four appeals save and except in respect of CHA service for the period Jan, 08 to March, 08 as the said service was notified from 1.4.2008. In course of export, the documents are generated as the transaction progresses and all the documents are not generated at one point of time. The whole refund claim cannot be rejected only on the ground of non-finding of all the particulars or an instrument or documents, if it is available in other accompanying documents which are annexed together, supporting the transaction of export. The intention of the legislature is not to export the domestic taxes and to encourage export. Therefore, the services have been utilized in the course of export business of the appellant and accordingly, the appellant is entitled for refund. - decided in favour of appellant

Summary

Issues:
1. Claim of refund of Service Tax paid on specified input services for export business.
2. Rejection of refund claims by Assistant Commissioner and Commissioner (Appeals).
3. Interpretation of Notification No. 41/2007-ST and subsequent clarifications.
4. Discrepancies in claims related to Courier Service, Storage and Warehousing services, and CHA services.
5. Applicability of conditions for exemption of Service Tax for exporters.
6. Consideration of subsequent clarifications and amendments in deciding refund claims.
7. Legal arguments based on previous Tribunal rulings.

Analysis:

1. The appellant, a manufacturer and exporter of readymade garments, filed quarterly refund claims for Service Tax paid on taxable services utilized for export business. The Assistant Commissioner rejected the claims due to discrepancies in documents for Courier, Storage, Warehousing, and CHA services.

2. The Commissioner (Appeals) upheld the rejection, leading to the appellant's appeal. The appellant argued that subsequent clarifications and amendments to Notification No. 41/2007-ST should be considered for refund eligibility.

3. The appellant highlighted the criteria for exemption of Service Tax for exporters, emphasizing compliance with specified services, registration with Export Promotion Council, payment of Service Tax, non-claim of CENVAT Credit, and refund claim amount.

4. Specific issues were raised regarding the approval and exclusive use of warehouse for export goods, conditions for CHA services, and documentation requirements for Courier services.

5. The appellant referenced subsequent clarifications removing certain conditions for warehouse services and the interpretation of CHA services under Notification No. 41/2007-ST.

6. The Tribunal considered the appellant's arguments, previous Tribunal rulings, and the Division Bench ruling related to IEC code requirements in invoices for refund eligibility.

7. Ultimately, the Tribunal allowed the appeal, directing the refund of Service Tax within a specified period, considering the appellant's compliance with export-related documentation and the intention to encourage exports by not burdening them with domestic taxes.

This detailed analysis covers the issues involved in the legal judgment, providing a comprehensive understanding of the case and the Tribunal's decision based on the arguments presented and the relevant legal framework.