2017 (4) TMI 991 - AT - Service Tax

Refund claim - N/N. 41/2007-ST dt 06.10.2007 - denial on the ground of non-fulfilment of certain conditions laid down under Notification - Held that - in its subsequent order dt.7.10.2010, the Ld. Commissioner (Appeals), after taking into consideration of the documents/evidences being satisfied about the eligibility of refund of Service Tax paid on such services, allowed their Appeal which has been followed by the Adjudicating Authority in its order dtd 08.4.2011 - the matter needs to be remanded to the Original Authority to decide the issues afresh - appeal allowed by way of remand.

Summary

Issues:
Appeals against OIA passed by the Commissioner of Central Excise (Appeals) -AHMEDABAD-I regarding denial of refund claim on Service Tax paid on Input Services for export of Cotton Fabrics under Notification No. 41/2007-ST.

Analysis:
The appellants, engaged in the manufacture of Cotton Fabrics, filed refund claims for Service Tax paid on Input Services during specific quarters for the export of finished goods. The Adjudicating Authority denied the refund claim citing non-fulfillment of conditions under Notification No. 41/2007-ST. The Ld Commissioner (Appeals) allowed the refund for CHA service but remanded the matter for verification of documents related to other services. The appellant's appeal was based on the denial of refund for GTA Services. The Ld Advocate argued that subsequent explanations led to the allowance of the appeal for GTA Services and Business Auxiliary Service in another order, which was accepted by the Department. They requested a remand for a fresh decision based on document verification.

The LD AR for the Revenue supported the findings of the Ld Commissioner (Appeals). The Member (Judicial) noted that the Ld Commissioner (Appeals) had disallowed the refund for GTA Service and Business Auxiliary Service initially due to non-compliance with Notification conditions. However, in a subsequent order, the Ld Commissioner (Appeals) allowed the refund after being satisfied with the documents and evidences provided. This decision was accepted by the Department and followed by the Adjudicating Authority. Therefore, the matter was remanded to the Original Authority for a fresh decision considering the observations of the Ld Commissioner (Appeals) in the subsequent order. The appeals were allowed by way of remand.

In conclusion, the judgment involved a remand to the Adjudicating Authority for a fresh decision on the refund claims for Service Tax paid on Input Services for the export of Cotton Fabrics, based on the satisfaction of conditions as per Notification No. 41/2007-ST and subsequent orders allowing the refund for certain services.