2016 (9) TMI 140 - AT - Service Tax

Refund claim export of goods - 100% exporter - notification number 41/2007-ST specified services terminal handling charges bill of lading charges inland haulage services clearing and forwarding agent services time bar Held that - all the services are entitled to the refund of the service tax paid on them in terms of the notification number 41/2007-ST. The lower authorities would re-quantify refund amounts falling within the limitation period matter remanded appeal disposed off decided in favor of appellant.

Summary

Issues:
Refund claim of service tax paid on services utilized for export; Rejection of refund claim by lower authorities; Classification of services as specified services under notification 41/2007-ST; Applicability of Tribunal decisions on similar services; Time-barred refund claims.

Analysis:
The judgment revolves around the appellant, a 100% exporter, filing a refund claim for service tax paid on services used for exporting goods under notification 41/2007-ST. The lower authorities rejected the refund claim, contending that the services were not specified under the said notification. The services in question included terminal handling charges, bill of lading charges, inland haulage services, and clearing and forwarding agent services. The Tribunal referred to various decisions, establishing that these services are considered port services and fall under specified services covered by the notification. Notable references include decisions like SRF Ltd. vs. CCE Jaipur-I and Shivan Exports, among others. The Tribunal found that all the services are entitled to a refund of the service tax paid, with a direction for re-quantification of refund amounts within the limitation period.

The Legal Draftsman for the Revenue acknowledged that the disputed services were in favor of the assessee based on the mentioned judgments but raised a concern regarding the time limitation for a part of the refund claims. However, the Advocate representing the appellant agreed not to contest the denial of the refund claim on the grounds of being time-barred. Consequently, the Tribunal held that all the services are eligible for a refund of the service tax paid under notification 41/2007-ST, with instructions for the lower authorities to re-calculate refund amounts falling within the limitation period. Ultimately, the appeal was disposed of in the manner described, emphasizing the entitlement to the refund for the specified services utilized for export.