2017 (1) TMI 430 - AT - Service Tax

Refund claim - N/N. 41/2007 - ST dated 06.10.2007 - denial on the ground that service tax paid on IHC charges, terminal handling charges, documentation charges, freight charges and testing and analysis services are not covered under port service as the service providers are registered under different category of service and proof of deposition of tax under port service were not produced - Held that - with regard to the port service,the credit benefit allowed on the taxable services used for export of goods within the port. With regard to the technical testing and analysis service, since there is valid agreement entered into between the appellant and the overseas buyer for issuance of certificate for undertaking the activities, the same are in conformity with the conditions mentioned in the Notification dated 06.10.2007. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Refund claims under Notification No.41/2007 - ST rejected due to service tax on various charges not considered as port service.

Analysis:
The appeals involved the rejection of refund claims by the appellants under Notification No.41/2007 - ST on the grounds that the service tax paid on various charges such as IHC charges, terminal handling charges, documentation charges, freight charges, and testing and analysis services were not considered as part of port services. The authorities below rejected the claims stating that the service providers were registered under different service categories, and proof of tax deposition under port service was not provided.

Upon hearing both sides and examining the records, the consultant for the appellant argued that the services provided by the service provider within the port area for exporting goods were eligible for refund. Reference was made to a previous Tribunal case involving Dolphin Knit Pvt. Ltd. where a refund claim was allowed. Regarding the testing and analysis service, it was highlighted that there was an agreement between the appellant and the overseas buyer for issuing a certificate of weight and quality.

The Tribunal, in the case of Dolphins Knit Pvt. Ltd., had previously allowed cenvat benefit on taxable services used for exporting goods within the port. Citing decisions from other cases, it was established that technical testing and analysis services were also eligible for refund under the conditions mentioned in the Notification dated 06.10.2007. Consequently, the Tribunal found no merit in the impugned orders and ruled in favor of the appellants, allowing the appeals.

The judgment was delivered in an open court session, and the appeals were disposed of by a common order issued by the Tribunal member.