2011 (3) TMI 39 - AT - Service Tax

Refund of service tax - Export - notification no/ 41/2007 - The burden to prove eligibility of the refund claim is on the appellants -The appellants shall produce the relevant documents within 30 days from the date of receipt of this order Thus the appeal is allowed by way of remand

Summary

Issues:
Appeal against Commissioner (Appeals) order for refund of service tax on commission paid to foreign agents in connection with exports.

Analysis:
The original authority sanctioned a refund of service tax for services used in export under Notification No.41/2007-ST. The department appealed against the refund related to commission paid to foreign agents. Commissioner (Appeals) set aside the original authority's order due to discrepancies in the refund claim documents. The discrepancies included missing taxable values, discrepancies in commission amounts, and lack of discussion on FOB value. Respondents argued they met all conditions but failed to provide evidence of rectifying discrepancies. Commissioner (Appeals) found the discrepancies unresolved and rejected the refund for foreign commission agency services.

Grounds of Appeal:
The appellant argued that all relevant documents were submitted to the original authority. They contended that if more documents were needed, they could have been provided promptly. The appellant requested an opportunity to produce additional documents to support their claim.

Decision:
After considering submissions, the burden of proving eligibility for the refund fell on the appellants. The Commissioner (Appeals) found discrepancies unaddressed and ruled against the refund. The appellate tribunal decided to remand the matter for fresh consideration. The order of the Commissioner (Appeals) was set aside, and the case was sent back for reevaluation. The appellants were given 30 days to produce the necessary documents for reconsideration. The appeal was allowed for remand to provide a fair opportunity for the appellants to present evidence and address the discrepancies noted by the Commissioner (Appeals).