2010 (8) TMI 581 - AT - Service Tax

Denial of refund claim - Claim for refund of service tax paid under Notification No. 41/2007-S.T., dated 6-10-2007 - Held that as per the decision of Aarvee Denims & Exports Ltd. v. CCE (2009 -TMI - 35009 - CESTAT, AHMEDABAD), wherein this Tribunal has held as per Circular No. 112/6/2009-S.T. dated 12-3-2009, even if the service provided is registered for providing one service refund cannot be denied on the ground that the taxable service provided are not covered under the registration. Hence, the denial of refund claim on the ground that the appellant is not registered under the Business Auxiliary Service is not sustainable - The appeal is allowed with consequential relief by setting aside the impugned order.

Summary

Issues:
- Denial of refund claim due to non-registration under "Business Auxiliary Service."

Analysis:
The appellant appealed against the denial of their refund claim by lower authorities based on not being registered under the category of "Business Auxiliary Service." The appellant's advocate referred to Circular No. 112/6/2009-S.T. dated 12-3-2009, highlighting that there is no provision in the CENVAT Credit Rules or Service Tax laws restricting service tax credit based on registration under a specific service category. The advocate also cited a previous Tribunal decision where it was held that even if the service provider is registered for one service, refund cannot be denied for other taxable services not covered under that registration. The Tribunal emphasized that documentary evidence of service tax collection fulfills legal requirements, and the appellant is not obligated to prove that the service provider deposited dues with the Government.

The Departmental Representative supported the lower authorities' decisions, but after hearing both sides, the Tribunal examined Circular No. 41/2007-S.T. and related circulars regarding refund of service tax paid for specified services used in exporting goods. The circular clarified that denial of refund based on services not covered under the provider's registration is not valid under Notification No. 41/2007-S.T. The Tribunal concluded that the appellant was entitled to claim the refund, aligning with the principles established in the Aarvee Denims & Exports Ltd. case and the Board Circular. Consequently, the Tribunal allowed the appeal, setting aside the impugned order and granting consequential relief to the appellant.

In summary, the judgment addressed the issue of denial of a refund claim due to the appellant not being registered under the "Business Auxiliary Service" category. The Tribunal analyzed relevant circulars and legal provisions, emphasizing that registration under a specific service category does not bar refund claims for other taxable services. The decision was based on established legal principles and previous case law, ultimately allowing the appeal and providing relief to the appellant.