2016 (8) TMI 188 - AT - Service Tax

Rejection of refund claim of the service tax paid on the freight, terminal handling charges (THC) and documentation charges as per Notification No.41/2007-ST. - export of goods - Held that - When there is no dispute as to the export of the goods and availment of THC services and the discharge of service tax by the service provider, the refund application of the appellant should have been allowed without any reservation. - appellant is eligible for refund of the amount of the service tax paid by the service provider on the services rendered for terminal handling charges. However, the refund claim of the service tax paid on freight and documentation charges is rejected as conceded by the learned counsel. - Decided partly in favor of assessee.

Summary

Issues:
Rejection of refund claim of service tax paid on freight, terminal handling charges (THC), and documentation charges under Notification No.41/2007-ST.

Analysis:
The appellant, a merchant exporter, contested the rejection of the refund claim only for THC. The appellant argued that Notification 41/2007 should apply to them, citing a circular by the Central Board of Excise and Customs. The departmental representative contended that the refund should strictly adhere to the terms of Notification 41/2007.

The Tribunal found the arguments of the departmental representative unsubstantiated. It was established that the appellant, as a merchant exporter, had exported goods and received THC services for the same, even though the service provider had paid the service tax under a different category. Referring to Circular No.112/6/2009-ST, the Tribunal concluded that the appellant was entitled to the refund of service tax paid on THC, supported by previous Tribunal judgments.

Therefore, the Tribunal held that the appellant was eligible for a refund of the service tax paid on THC, while the refund claim for freight and documentation charges was rejected as per the appellant's concession.

The appeal was disposed of accordingly.