9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 413 - AT - Service TaxRefund of Service tax - export of textile made-ups under the claim of drawback - Held that - an identical issue was considered by the Tribunal in the case of Art & Craft Inc. & others Vs. Commissioner, 2016 (4) TMI 25 - CESTAT NEW DELHI where the Tribunal held that N/N. 33/2008-ST dated 07.12.2008 cannot be held to be of retrospective nature and the refund claims filed prior to the introduction of the said notification would be hit by N/N. 41/2007-ST, if the exports have been made under duty drawback. The exports were made prior to the introduction of the N/N. 33/2008-ST dated 07.12.2008 and were admittedly under the claim of drawback, the refunds are not admissible to the appellants - appeal dismissed - decided against appellant.
Issues involved:
Refund claim of service tax paid on input services for exports under duty drawback claim. Analysis: The appellants, engaged in the export of textile made-ups, filed a refund claim for service tax paid on input services under Notification No.41/2007-ST. This notification allows refunds for services utilized for exports not made under duty drawback claim. The appellants argued that Notification No.33/2008-ST, allowing refunds even for exports under duty drawback claim, should be applied retrospectively. However, the lower authorities rejected this plea, stating that the refunds cannot be claimed for exports made under duty drawback claim prior to the introduction of Notification No.33/2008-ST. The Commissioner (Appeals) highlighted that the appellants availed drawback for all goods exported for which service tax refund was claimed. It was noted that Notification No.41/2007-ST does not permit refunds for goods exported under duty drawback, a condition withdrawn by Notification No.33/2008-ST. The Commissioner emphasized that the latter notification cannot be applied retrospectively, and refunds can be claimed simultaneously with duty drawback only from its effective date, i.e., 07.12.2008. As the goods were exported before this date under duty drawback claim, service tax refunds were deemed inadmissible. The Tribunal referred to previous decisions where it was held that Notification No.33/2008-ST is not retrospective. Refunds filed before its introduction would be impacted by Notification No.41/2007-ST if exports were made under duty drawback. Since the exports in the present case were made before the introduction of Notification No.33/2008-ST and under duty drawback claim, the Tribunal upheld the lower authorities' decisions, denying the appellants' refund claims. In conclusion, the Tribunal rejected the appellants' requests for adjournment, as the issue was covered by precedent decisions. The Tribunal proceeded with the appeals and upheld the lower authorities' decisions, stating that refunds for service tax paid on input services for exports made under duty drawback claim prior to the introduction of Notification No.33/2008-ST were not admissible.
|
