2017 (8) TMI 791 - AT - Service Tax

Refund claim - services received by the respondent-assessee in the course of export of their products - Natural Justice - Held that - In a catena of decisions by the this Tribunal, it has been held that such charges like Terminal Handling Charges, Empty Container of loading Charges, Rail to yard Movement Charges and Documentation Charges etc. are all eligible services for refund under the provisions of N/N. 41/2007 - ST as amended, read with successive N/N. 17 of 2009 as amended - refund allowed - decided in favor of assessee.

Summary

Issues:
- Allowability of refund on services received by the respondent-assessee in the course of export of their products.
- Power of Commissioner (Appeals) to remand cases for fresh adjudication.

Issue 1: Allowability of refund on services received by the respondent-assessee in the course of export of their products:
The respondent filed refund claims for Service Tax paid on services received during the export of their products. The Adjudicating Authority allowed the refund for services received from Container Corporation of India but rejected claims for other services like Terminal Handling Charges, Empty Container Offloading Charges, Rail to Yard movement charges, and Documentation Charges. The Assistant Commissioner based the rejection on the grounds that these services were not covered under the exemption of Notification No.41/ST/2007 as amended. The Assistant Commissioner also questioned the genuineness of the claim for Service Tax paid on CHA charges. The Commissioner (Appeals) remanded the case for fresh adjudication, providing an opportunity of hearing. The Tribunal, after considering past decisions, held that the disputed charges were eligible for refund under the relevant notifications. Consequently, the Tribunal dismissed the Revenue's appeals and directed the Adjudicating Authority to grant the refund with interest within 60 days.

Issue 2: Power of Commissioner (Appeals) to remand cases for fresh adjudication:
The Revenue appealed against the order of remand by the Commissioner (Appeals), arguing that the Commissioner lacked the power to remand cases after the amendment in Section 35A (3) of the Central Excise Act. The Tribunal, after hearing both parties, determined that the issue was settled through previous decisions. The Tribunal held that the Commissioner (Appeals) had the authority to remand cases for fresh adjudication. Consequently, the Tribunal dismissed the Revenue's appeals and directed the Adjudicating Authority to grant the refund to the respondent-assessee along with interest within 60 days.

In conclusion, the Tribunal ruled in favor of the respondent-assessee, allowing the refund claims for services received during the export of their products. The Tribunal also affirmed the power of the Commissioner (Appeals) to remand cases for fresh adjudication, dismissing the Revenue's appeals on this ground as well.