2017 (4) TMI 646 - AT - Service Tax

Refund claim - N/N. 41/2007-S.T., dated 6-10-2007 - refund claim rejected on the grounds that notification requires submission of original invoices, duly certified - Held that - The intention and idea in getting every invoice certified is to establish that such services were used by the assessee for export purposes and in fact stands paid for by them. Instead of certifying each and every invoice individually and separately, if a consolidated certificate giving details of the invoices, stand given by the assessee, the same would fulfill the notification criteria - the invoice number mentioned in the Chartered Accountant certificate are required to be verified - appeal allowed by way of remand.

Summary

Issues: Refund of service tax paid on services utilized for export purposes under Notification No. 41/2007-S.T.

The judgment pertains to the issue of refund of service tax paid on various services used for export purposes under Notification No. 41/2007-S.T. The lower authorities rejected the refund claim on the grounds that the notification required submission of original invoices, duly certified. The appellant had provided a consolidated certificate by their Chartered Accountant instead of separately certifying each invoice. The Tribunal found that the consolidated certificate did not fulfill the notification's requirement, leading to the denial of the refund.

The appellant argued that the consolidated certificate referenced each invoice involved in the appeal, implying that every invoice had been certified. The Revenue, represented by the DR, pointed out that some original invoices were not submitted, and some invoices lacked certification. The Tribunal, after considering both sides' submissions, disagreed with the Revenue's objection. They noted that the purpose of certifying invoices was to establish that the services were used for export and paid for by the assessee. They opined that a consolidated certificate providing invoice details could fulfill the notification criteria. However, they emphasized the need for verification of invoice numbers mentioned in the Chartered Accountant certificate and stated that refunds for invoices not produced or certified would not be admissible.

Consequently, the Tribunal set aside the lower authorities' order and remanded the matter to the original adjudicating authority for document verification and adjustment of the refund accordingly. The decision highlighted the importance of fulfilling notification criteria for refund claims and the necessity of proper certification and documentation to support such claims.