2016 (8) TMI 1207 - AT - Service Tax

Refund claim - Terminal Handling charges - denial on the ground that these are not port services - Held that - Board s Circular No. F. No. B-11/1/2000-TRU dated 09/07/2001 clarifies that Terminal Handling charges are covered within the category of port services and since port service is one of the specified services under N/N. 41/2007-ST the refund has been allowed - appeal dismissed - decided against Revenue.

Summary

Issues: Refund of service tax on CHA services, Terminal Handling charges, and Transportation of Goods from factory to port area under Notification No. 41/2007-ST.

The judgment addresses the issue of refund of service tax paid on various services like CHA services, Terminal Handling charges, and Transportation of Goods from the factory to the port area under Notification No. 41/2007-ST. The Original Authorities sanctioned the refund, which was challenged by the Revenue specifically regarding the refund granted on Terminal Handling charges. The Commissioner (Appeals) upheld the grant of refund, citing that Terminal Handling charges fall under the category of 'port services,' which is specified under the notification. The Tribunal, after considering various decisions, including those in the cases of Shivam Exports and SRF Ltd. vs. CCE, Jaipur - I, concluded that Terminal Handling charges are covered within the scope of 'port services' and upheld the grant of refund. The Tribunal dismissed the Revenue's appeals, relying on the previous decisions and finding no reason to take a different view.

In this case, the Tribunal analyzed the issue of refund of service tax under Notification No. 41/2007-ST for services like CHA services, Terminal Handling charges, and Transportation of Goods. The Commissioner (Appeals) had allowed the refund on Terminal Handling charges, considering them as part of 'port services' based on a Board's Circular and previous Tribunal decisions. The Tribunal noted that the issue had been settled by previous decisions and cited cases like Shivam Exports and SRF Ltd. vs. CCE, Jaipur - I to support the decision. The Tribunal found the previous decisions in favor of the assessees and dismissed the Revenue's appeals, maintaining consistency with the established interpretation of the law.

The judgment provides a detailed analysis of the issue concerning the refund of service tax on various services under Notification No. 41/2007-ST. The Revenue challenged the refund granted on Terminal Handling charges, arguing that they were not specifically listed as a service eligible for refund under the notification. However, the Commissioner (Appeals) upheld the refund, considering Terminal Handling charges as part of 'port services' based on a Board's Circular. The Tribunal, after reviewing previous decisions, including those in the cases of Shivam Exports and SRF Ltd. vs. CCE, Jaipur - I, affirmed that Terminal Handling charges are covered within the category of 'port services' and upheld the grant of refund. Consequently, the Tribunal dismissed the Revenue's appeals, emphasizing the consistency of the decision with established precedents and interpretations of the law.