2014 (12) TMI 710 - AT - Service Tax

Denial of refund claim - Whether the documents/invoices which were produced by the appellants before the Commissioner (Appeals) as well as adjudicating authority have proper import and export code number in terms of Notification No.17/2009-ST dated 7.7.2009 - Held that - Issue for proper reconciliation could be looked into by the adjudicating authority for proper appreciation. Onus is on the appellant to produce necessary documents before the adjudicating authority alongwith invoices indicating import & export code number so that activities of export could be correlated with the documents and notifications which is mandatory requirement. - matter remanded back - Decided in favour of assessee.

Summary

Issues:
Refund claim rejection due to lack of correlation between invoices and export, absence of import and export code number on certain invoices.

Analysis:
The appellant challenged the rejection of a refund claim amounting to Rs. 72,705 on the grounds of inability to correlate invoices with export and missing import and export code numbers. The Commissioner (Appeals) and the adjudicating authority both disallowed the refund claim based on these discrepancies. The central issue for determination was whether the documents/invoices presented had proper import and export code numbers as per Notification No.17/2009-ST dated 7.7.2009.

The appellant's representative, a learned CA, argued that they had provided transaction details and evidence from courier agency FedEx to support the incurred charges for book exports. Specific invoices were highlighted to demonstrate the presence of import and export code numbers. However, not all invoices were available on record, although courier charges bills and receipts were accessible. The CA contended that the reconciliation of invoices with import and export codes could be achieved if given the opportunity, emphasizing the denial of natural justice by the authorities' failure to conduct a thorough review.

The Learned DR concurred with the proposal to remand the case to the adjudicating authority, stressing the importance of aligning the documents with the relevant Notification No.17/2009-ST dated 7.7.2009. After hearing both sides and examining the facts, the judge agreed with the CA's argument that proper reconciliation could be undertaken by the adjudicating authority for a comprehensive assessment. The onus was placed on the appellant to furnish necessary documents, including invoices with import and export code numbers, to facilitate the correlation of export activities with the required notifications.

Consequently, the matter was remanded to the adjudicating authority with a directive for completion within three months. Both parties were instructed to be afforded adequate opportunities to present their respective cases, ensuring a fair and thorough adjudication process.