2017 (5) TMI 106 - AT - Service Tax

Refund claim - denial on the ground that the service tax has been paid after filing the refund claim by the respondent - Held that - the export took place prior to filing the refund claim and the amount of goods exported was received by the respondent for Foreign Importer after filing the refund claim. The services taken from the commission agent were paid on receipt of the amount and service tax was paid under reverse charges mechanism accordingly - the ld. Commissioner has rightly sanctioned the refund claim to the respondent as it has been established that the service tax has been paid by the respondent for export of the goods - appeal dismissed - decided against Revenue.

Summary

Issues:
Appeal against refund claim of service tax paid on export goods under exemption Notification No. 41/2007-ST dated 06.10.2007.

Analysis:
The Appellate Tribunal CESTAT, Chandigarh heard an appeal where the Revenue challenged an order sanctioning a refund claim of service tax paid by the respondent on export goods under an exemption notification. The Revenue contended that since the service tax was paid after filing the refund claim, the respondent was not entitled to the refund. However, the Tribunal considered that the export occurred before the refund claim was filed, and the amount for the goods exported was received by the respondent after filing the claim. The services from the commission agent were paid upon receipt of the amount, and the service tax was paid under reverse charges. The Tribunal noted that the cause of action for the refund claim arose at the time of export of goods. Consequently, the Tribunal upheld the Commissioner's decision to sanction the refund claim, finding that the service tax was indeed paid by the respondent for the export of goods. Therefore, the Tribunal found no issue with the impugned order and dismissed the Revenue's appeal. The decision was dictated and pronounced in open court by Ashok Jindal, the Judicial Member.