2017 (6) TMI 636 - AT - Service Tax

Refund claim - Port Service or Inland Haualge Charges - Road Transport from factory to ICD - CHA Service - Clearing and forwarding Agent Service - denial on the ground that the appellant is claiming duty drawback - Held that - while calculating the amount of drawback on input service has not been considered, therefore, the services received by the assessee for export of goods have not demanding duty drawback claim - refund allowed. Denial also on the ground that Inland Haulage Charges, CHA Service, Clearing and forwarding Agent Service do not qualify as port service - Held that - the Inland Haulage Charges, CHA Service and Clearing and Forwarding Agent Service have been received by the appellants for export of goods at port, and are covered under Port Services. In that circumstances, the appellants are entitled to avail claim of refund filed by them on Other Port Services. Denial of refund also on the ground that the appellant has not produced the payment of proof of service tax - Held that - as the invoices of the above services are on record, wherein the payment of service tax is mentioned. In that circumstances, on this ground refund claims cannot be rejected to the appellant. Refund claim with regard to Road Transport Service - denial on the ground that there is no co-relation of invoices issued by the service provider and the goods transported - Held that - the adjudicating authority is directed to verify the documents to ascertain co-relation between the services received by the appellants and corresponding invoices issued by the goods transporter. On verification of the said fact, the adjudicating authority is directed to issue refund claims to the appellants. Appeal allowed by way of remand.

Summary

Issues:
- Change of cause title in the application
- Denial of refund claims on various services
- Denial of refund on account of duty drawback claimed
- Denial of refund on the ground of services not qualifying as port services
- Lack of correlation between invoices and goods transported in Road Transport Service

Change of Cause Title:
The applicants sought a change in the cause title to reflect the correct respondent as "Commissioner of Central Excise, Delhi-III" instead of "Commissioner of Central Excise (Appeals), Delhi-III." The Tribunal allowed the change as the show cause notice was issued by the former authority, ensuring accuracy in the cause title.

Denial of Refund Claims:
Refund claims on services like Port Service, Inland Haulage Charges, Road Transport, CHA Service, and Clearing and Forwarding Agent Service were denied. The denial was based on the lack of documentation or correlation with the services provided. Additionally, the appellants were deemed ineligible for refund due to availing duty drawback claimed on exports.

Denial of Refund on Duty Drawback Claimed:
The Tribunal referenced a previous case to establish that services used for export, not covered by drawback claims, are eligible for service tax refund. It was emphasized that services linked to exports, not classified as input services, should not impact refund eligibility based on duty drawback claims.

Denial of Refund on Services Not Qualifying as Port Services:
Refunds were denied on Inland Haulage Charges, CHA Service, and Clearing and Forwarding Agent Service, as they were not initially considered as part of Port Services. However, the Tribunal clarified that these services, received for export at the port, indeed fall under Port Services, making the appellants eligible for refund claims.

Lack of Correlation in Road Transport Service Refund Denial:
The denial of refund in Road Transport Service was due to a lack of correlation between invoices issued by the service provider and the goods transported. The Tribunal directed the adjudicating authority to verify this correlation and, upon confirmation, instructed the issuance of refund claims to the appellants.

In conclusion, the Tribunal addressed each issue comprehensively, ensuring clarity on the cause title change, reasons for refund denial, eligibility based on duty drawback claims, service classification under Port Services, and the need for correlation in Road Transport Service for successful refund claims.