2012 (7) TMI 808 - AT - Service Tax

Whether when courier service is connected with export and relevancy thereof was not doubted, the appellant cannot be denied relief of credit relating to tax paid for appropriate consequence under different law Held that - When the authority recorded that certificates from courier agency were presented by the appellant, authority could have made an enquiry with the courier agency for further clarification in the matter if he was not satisfied with those certificates - Once the sample copy of the evidence submitted on record, does not rule out genuineness of claim of the appellant, the appellant succeeds in the appeal, accordingly that is allowed.

Summary

Issues:
- Denial of credit for tax paid on courier services used for dispatching samples abroad
- Failure to correlate courier service invoices with export of goods
- Evidence presented by the appellant to prove dispatch of consignment through courier
- Lack of consideration of evidence by the Appellate Authority

Analysis:
The judgment revolves around the denial of credit related to tax paid on courier services used for dispatching samples abroad. The appellant argued that the courier service was connected with export, and the relevancy of this connection was not in doubt. The appellant contended that the evidence presented, including certificates from the courier agency and details of consignments to different countries, clearly proved the dispatch of consignments through courier for delivery abroad. The appellant highlighted a previous order where a similar refund was granted for consignments sent through couriers, supporting their claim.

The Appellate Authority, however, failed to consider the evidence on record thoroughly. The Judicial Member noted that the evidence, including certificates from the courier agency and specific invoice details, was not properly evaluated by the authority. It was emphasized that if the authority had doubts about the presented certificates, an inquiry with the courier agency could have been made for further clarification. The Judicial Member found that the evidence submitted did not discredit the genuineness of the appellant's claim, leading to the decision in favor of the appellant.

In conclusion, the judgment highlighted the importance of thoroughly evaluating evidence presented in tax-related matters. The failure of the Appellate Authority to consider the evidence led to the decision in favor of the appellant, allowing the appeal and setting aside the impugned order. The judgment underscored the need for authorities to conduct proper inquiries and assessments when dealing with claims related to tax credits and refunds, especially when relevant evidence is provided by the appellant.