2011 (10) TMI 438 - AT - Service Tax

Refund - Notification No. 41/2007, dated 6-10-2007 and Notification No. 17/2009, dated 7-7-2009 - It is not in dispute that the appellants have stored some inputs in addition to export goods in the impugned warehouse and, going by the condition of the previous notification read strictly as has been done by the authorities below, the appellants are not eligible for refund on exports made upto 6-7-2009 in this regard - Held that refund allowed for the period from 7-7-2009 onwards as the relevant notification does not prescribe any condition that the storage and warehouse should be exclusively used only for the purpose of export goods - Decided in favor of the assessee by way of remand to original authority

Summary

Issues:
Refund claim rejection on four counts, grant of refund on two counts, denial of refund of Rs. 1,80,204, conditions under different notifications, eligibility for refund based on storage conditions, different conditions in predecessor and successor notifications, eligibility for refund from 7-7-2009 onwards, remittance of matter to original authority for re-calculation.

Analysis:
The judgment addresses the issue of the denial of a refund amount of Rs. 1,80,204 relating to exports made during a specific period. The judge notes that for exports made from 14-5-2009 till 6-7-2009, the refund conditions are governed by a previous notification, while for the remaining period, a new notification applies. The judge highlights the difference in conditions between the two notifications, specifically regarding the requirement that the storage and warehouse be exclusively used for export goods. The judge observes that the appellants stored inputs in addition to export goods, making them ineligible for refund under the previous notification. However, for the period from 7-7-2009 onwards, the judge finds no such condition in the new notification, indicating a relaxation for using warehouses for multiple purposes related to export goods production. Consequently, the judge partially allows the appeal by granting the refund from 7-7-2009 onwards and remits the matter to the original authority for re-calculation and refund processing.

The judgment also addresses the issue of a smaller amount of Rs. 4,472, which the appellants did not press during the proceedings. In this regard, the judge dismisses the appeal concerning this amount as not pressed. The decision is dictated and pronounced in open court, bringing clarity to the resolution of the refund claim issues based on the differing conditions in the notifications and the eligibility criteria for refund amounts based on the specific periods of export activities.