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2017 (3) TMI 726 - AT - Service TaxRefund claim - N/N. 41/2007-ST dated 16.10.2007 as amended - Goods Transport Agency (GTA) Services used in relation to export of iron ore fines - denial on account of nexus - Held that - the issue is no more res integra - C.B.E. & C. in Para 3.2.1 of Circular No.120/01/2010-ST dated 19.01.2010 conveys that in budget 2009 the scheme under N/N. 41/2007-S.T. was simplified in N/N. 17/2009-S.T. by providing self certification or Chartered Accountant s certification about co-relation and nexus between input Services & the exports. That above logic can be followed for N/N. 5/2006-C.E. (N.T.) where such simplification of N/N. 17/2009-S.T. may not be available - the matter is remanded back to the Adjudicating authority to decide the matter on the basis of Chartered Accountant s certificate to establish the co-relation required under N/N. 41/2007-S.T - appeal allowed by way of remand.
Issues involved:
Refund claim disallowed on GTA Services - Interpretation of Notification No. 41/2007-ST - Applicability of self-certification provision - Necessity of Chartered Accountant's certification for refund claim - Remand to Adjudicating authority for further consideration. Analysis: The case involves appeals filed against Orders-in-Appeal disallowing refund claims on Goods Transport Agency (GTA) Services related to the export of iron ore fines. The appellants, engaged in export activities, filed refund claims under Notification No.41/2007-ST. The Adjudicating Authority and the Commissioner (Appeals) rejected the refund claims. The issue revolves around the interpretation of the notification and the requirement for establishing a nexus between input services and exports. The Circular No.120/01/2010-ST dated 19.01.2010 clarified the procedure for refund claims under Notification No.41/2007-S.T. It introduced a self-certification provision, allowing exporters or their Chartered Accountants to certify the co-relation between inputs and exports. This simplified scheme aimed to expedite the refund process by reducing the scrutiny of documents. The Circular emphasized the importance of basic scrutiny by departmental officers and the role of certification in facilitating the refund process. The Tribunal noted that the Circular's provisions were applicable to a similar scheme under Notification No.17/2009-S.T. The Tribunal highlighted the significance of Chartered Accountant's certification in establishing the required co-relation under the notification. The respondent failed to persuade the Tribunal to adopt a different view, leading to the decision to remand the matter to the Adjudicating authority for reconsideration. The Tribunal allowed the appeals, directing a remand to the Adjudicating authority for further examination of the refund claims on GTA Services. The decision emphasized the necessity of Chartered Accountant's certification to establish the co-relation as per the Circular's guidelines. The appellants were granted an opportunity for a personal hearing to present the required certificates in line with the Circular's provisions. In conclusion, the judgment focused on the interpretation of Notification No.41/2007-ST, the applicability of self-certification provisions, and the requirement for Chartered Accountant's certification to support refund claims. The decision to remand the matter underscored the importance of complying with the Circular's guidelines for establishing the nexus between input services and exports in refund claims related to GTA Services.
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