2017 (4) TMI 1025 - AT - Service Tax

Refund claim - Courier charges - GTA services - Held that - On going through the Sample invoices, it is found that courier charges have been incurred in the process of export of the goods manufactured by the appellant and as such Courier charges to be allowable service for the purpose of refund under N/N. 41/2007. As regards GTA services, the appellant is entitled to refund being an eligible service. The appellant is entitled to refund of tax paid on such services received in the course of export - refund allowed - decided in favor of appellant.

Summary

Issues:
Refund of service tax paid on services utilized in export, disallowance of refund on courier charges, disallowance of refund on GTA services, disallowance of refund on CNF agent services, eligibility of service tax paid on invoices of M/s Wig Air Freight Pvt. Ltd.

Refund of Service Tax:
The appellant, a manufacturer-exporter, filed refund claims for service tax paid on services used in export. The adjudicating authority partially allowed and disallowed the claims. The appellant appealed against the common Order-in-Appeal rejecting the appeals. The disallowance was mainly due to issues with courier charges, GTA services tax, and certain unspecified services under Notification No.41/2007.

Courier Charges:
The appellant argued that courier charges were essential for export as evidenced by sample invoices showing details like consignor, consignee in the US, bill of lading number, freight charges, and service tax. The Tribunal concluded that these charges were incurred in the export process and deemed them allowable for refund under Notification No.41/2007.

GTA Services Tax:
The appellant demonstrated through sample invoices that GTA services were for transporting goods from factory/ICD to the export port. Citing relevant provisions and circulars, the Tribunal found the appellant eligible for refund under Notification No.41/2007. However, services by CNF agents received before the specified date were deemed ineligible, a decision not contested by the appellant.

Service Tax on M/s Wig Air Freight Pvt. Ltd. Invoices:
The appellant justified the service tax paid on invoices from M/s Wig Air Freight Pvt. Ltd. as relevant for export purposes, such as Certification-Certificate of Origin. The Tribunal ruled in favor of the appellant, granting a refund for tax paid on such services. The adjudicating authority was directed to recalculate the eligible refund and disburse it within 60 days from the order date, along with applicable interest.

Conclusion:
The Tribunal allowed the appeal, overturning the disallowances on courier charges, GTA services tax, and services by M/s Wig Air Freight Pvt. Ltd. It upheld the ineligibility of CNF agent services received before the specified date. The appellant was directed to receive the recalculated refund within the stipulated timeframe.