2018 (2) TMI 725 - AT - Service Tax

Refund claim - services utilized for export purposes - N/N. 17/2009-ST dated 07.07.2009 - denial on account of nexus - Held that - Revenue has not been able to place any evidence on record to show that the disputed services were not utilized for export purposes - the appellants have been able to adequately substantiate that services were utilized for export purposes - refund allowed - appeal dismissed - decided against Revenue.

Summary

Issues:
Refund of service tax paid on services utilized for export purposes under Notification No. 17/2009-ST dated 07.07.2009.

Analysis:
The appeal was filed by the Revenue against the order passed by the Commissioner (Appeals) regarding the refund of service tax paid on services utilized for export purposes. The dispute centered around establishing the nexus between the services availed and the export of goods. The Commissioner (Appeals) observed that the essential conditions for refund under Notification No. 17/2009-ST required the service tax to be paid and the services to be used in the export of goods. Although the invoices issued by the service provider did not mention the required details, a certificate provided by the appellant indicated the use of services in relation to export, supported by a chart correlating shipping bills with the Bill of Lading/Airway Bill numbers. The Commissioner (Appeals) found the evidence submitted by the appellant to be sufficient to prove the use of services in export, leading to the rejection of the Revenue's claim.

The Appellate Authority further examined the evidence on record and confirmed that the appellants had adequately substantiated the utilization of services for export purposes. The Revenue failed to provide any evidence to refute this claim. Consequently, the Appellate Tribunal found no grounds to interfere with the Commissioner (Appeals) order and rejected both appeals filed by the Revenue. The cross objections were also disposed of in line with the main findings of the case.