2011 (1) TMI 752 - AT - Service Tax

Refund of service tax - export of goods - Notification No.41/07-ST dated 6.10.2007 - the dispute relates to the factual position. Though the order of the Assistant Commissioner reflects upon the fact of production of agreement before him but the terms and conditions of the agreement do not stand spell out by him in detail. In such a scenario, we would require the original adjudicating authority to examine the terms of the agreement and decide the issue afresh. We accordingly set aside the impugned order and remand the matter to the original authority for de-novo adjudication in respect of the disputed part of the refund. The appeal is remanded in the above terms. The stay petition also gets disposed of.

Summary

Issues: Refund of service tax under Notification No.41/07-ST for export of excisable goods

Analysis:
1. The original adjudicating authority sanctioned a refund of service tax in accordance with Notification No.41/07-ST for the export of excisable goods.
2. The Revenue appealed against this order, challenging a part of the refund claim related to service tax paid on testing and analysis charges.
3. The Commissioner (Appeals) upheld the original authority's decision but rejected the refund claim for testing and analysis charges due to the absence of a copy of the agreement between the exporter and the buyer, as required by the notification.
4. The appellant argued that the agreement was indeed submitted to the Assistant Commissioner, contradicting the Commissioner (Appeals)'s assertion.
5. The Revenue contended that the agreement submitted did not clearly specify the testing and technical analysis services, agreeing that the Commissioner (Appeals) lacked clarity on this issue.
6. The Tribunal noted the factual dispute regarding the agreement's terms and conditions, directing the original adjudicating authority to re-examine the agreement and decide the issue afresh.
7. Consequently, the Tribunal set aside the Commissioner (Appeals)'s order and remanded the matter for a fresh adjudication on the disputed part of the refund claim related to testing and analysis charges.
8. The appeal was remanded accordingly, and the stay petition was disposed of.

This analysis highlights the key points of the judgment, focusing on the dispute over the refund claim for service tax paid on testing and analysis charges under Notification No.41/07-ST for the export of excisable goods. The decision emphasizes the importance of the agreement between the exporter and the buyer as required by the notification and the need for a detailed examination of the agreement's terms and conditions to determine the admissibility of the refund claim.