2011 (3) TMI 626 - AT - Service Tax

Refund - Service tax paid on GTA services under Notification No.41/2007 - GTA services for inward transportation of containers and detention charges - Since, service tax paid in respect of GTA services for inward transportation of containers and detention charges, prima-facie admissible - As regards detention charges, as rightly submitted that denial of refund would amount to reassessment at the receiver s end - As regards inward transportation of containers, the words used in table - in relation to would support the case of the appellants - Prima facie case in the favour of assessee.

Summary

Issues:
1. Denial of refund on service tax paid for GTA services under Notification No.41/2007.
2. Grounds for denial: transportation of empty containers, detention charges, and lack of details on lorry receipts.
3. Interpretation of the table in the notification regarding services "in relation to" transport of export goods.
4. Prima facie admissibility of service tax paid on inward transportation of containers and detention charges.
5. Waiver of pre-deposit and stay against recovery of dues during the appeal.

Analysis:
The Appellate Tribunal CESTAT, Ahmedabad addressed the issue of denial of refund amounting to Rs.55,888/- on service tax paid for GTA services under Notification No.41/2007. The denial was based on three grounds raised by the Revenue. Firstly, it was argued that the credit for transportation of empty containers to the factory and outward transportation of stuffed containers was not admissible as per the notification. The appellant contended that the services "in relation to" transport, as mentioned in the notification, should include services beyond just the transport of export goods. Secondly, the denial was also based on the service tax paid on detention charges of containers, which the appellant argued was part of the GTA service value. The third ground for denial was the lack of details on lorry receipts related to export goods, which the appellant stated would be provided later. The Tribunal found the service tax paid on inward transportation of containers and detention charges to be prima facie admissible. It agreed with the appellant's argument that denial of refund on detention charges would amount to reassessment at the receiver's end. The interpretation of the table in the notification supported the appellant's case, leading to a strong prima facie case in their favor. Consequently, the Tribunal waived the requirement of pre-deposit of dues and granted a stay against the recovery of the same during the appeal process. The decision aimed to uphold the appellant's rights and ensure a fair hearing of the case.