2015 (7) TMI 631 - AT - Service Tax

Denial of refund claim - Simultaneous drawback claim - Whether the Service Tax suffered on cargo handling service at the time of export of goods shall be simultaneously refunded when there is a drawback claim on the input suffering Excise duty is made by the respondent - Held that - drawback is against credit availed on the inputs used for manufacture of excisable goods, whereas cargo handling service is availed after the goods were cleared and in the course of export. There is a distinction between these two levies. The drawback is confined to the levy under Central Excise Law, which is before the clearance of the excisable goods. But the Service Tax paid on the services availed to export the goods is not subject matter of excise law for refund when the tax so paid relate to export. - drawback claim on input suffering duty when gave rise to exportable goods, that input duty is also refundable - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT NEW DELHI ruled that Service Tax paid on cargo handling service during export of goods can be refunded simultaneously with drawback claim on input suffering Excise duty. The Tribunal upheld the decision of the Commissioner (Appeals) in favor of the respondent, stating that taxes are not exported but goods are, making Service Tax refundable for exports. The appeal of the Revenue was dismissed.