2015 (9) TMI 1155 - AT - Service Tax

Denial of refund claim - input services of technical testing and analysis service used in relation of export of goods - Revenue has contended that weighment, sampling and stuffing of containers is not covered within the scope of technical testing and analysis service. - Held that - Physical testing and analysis would clearly include weighment and sampling also is based on certain physical or chemical characteristics. - for determination of the specifications of protein, fat moisture etc. samples were required to be drawn mixed and then analysed. Indeed, we find that the service providers issued proper certificates certifying weighing, packing and stuffing and the specification of protein, fat, moisture etc. - refund of the amounts was correctly sanctioned as per the provisions of Notification No. 41/2007-ST dated 6.10.2007 as amended. Thus, the impugned order does not suffer from any infirmity - Decided against Revenue.

Summary

Issues Involved:
- Interpretation of technical testing and analysis service under Section 65(106) of the Finance Act, 1994.
- Whether weighment, sampling, and stuffing of containers fall within the scope of technical testing and analysis service.
- Determination of whether the service provided qualifies for a refund under Notification No. 41/2007-ST dated 6.10.2007.

Analysis:
1. The Revenue appealed against an Order-in-Appeal seeking recovery of service tax refund for technical testing and analysis services under Section 65(105)(zzh) of the Finance Act, 1994, in relation to goods exported. The Commissioner (Appeals) upheld that the services of weighment, sampling, and stuffing were covered within the ambit of technical testing and analysis service, dismissing the Revenue's appeal.

2. The Revenue argued that activities like weighment, sampling, and stuffing of containers did not constitute technical testing and analysis service. They contended that supervision of wagon loading/unloading during stuffing was not technical in nature, and sampling and weighing were not part of the said service.

3. The respondent, in cross objections, referred to the definition of technical testing and analysis service, emphasizing the nature of testing and analysis involved. The service providers submitted reports detailing the tests conducted, supporting their claim.

4. The Tribunal analyzed the definition of technical testing and analysis service under Section 65(106), which includes physical, chemical, or scientific testing of goods. It noted that activities like weighment and sampling are based on physical or chemical characteristics, and stuffing required technical conditions like specific arrangements. The service providers issued certificates certifying the services provided, including weighing, packing, and specifications analysis, meeting the requirements of technical testing and analysis service.

5. Considering the provisions of Notification No. 41/2007-ST and the nature of services provided, the Tribunal concluded that the refund amounts were correctly sanctioned. The impugned order was deemed valid, leading to the dismissal of the Revenue's appeals and the disposal of the cross objections.