2018 (12) TMI 862 - AT - Service Tax

Rebate of service tax paid - export of goods - N/N. 41/2012-ST dated 29.06.2012 - Held that - The issue is no more resintegra in view of the various decisions of the Tribunal holding a consistent view - this Bench in the case of Commissioner of Service Tax-II, Kolkata vs. SSK Exports Ltd. & others 2017 (11) TMI 299 - CESTAT KOLKATA , wherein under similar circumstances, Revenue has contended that the refund claim for each shipping bill should be examined on individual basis instead of overall basis - The Tribunal has upheld the order of the Ld. Commissioner (Appeals) wherein it was held that there is no requirement to determine FOB value shipping bill wise, to determine the formula enumerated in Para 1 (c) or in Para 3(i) of the notification and the rebate claim should be allowed in full when the assessee has specified the said condition on overall basis - appeal allowed - decided in favor of appellant.

Summary

Issues:
Claim for rebate of service tax under Notification No.41/2012-ST dated 29.06.2012 for export of goods.

Analysis:
The appellant, engaged in trading of minerals, metals, and energy products, availed taxable services for export and claimed a rebate of service tax amounting to ?2,83,731/- for services used during export. A Show Cause Notice challenged a portion of the claim, leading to the Adjudicating Authority sanctioning ?2,61,867/- and rejecting ?21,864. The first appellate authority modified the sanctioned amount to ?28,575/- and directed the appellant to pay the differential amount of ?2,33,292/- with interest. The Tribunal heard the appeal against this order.

The appellant's consultant argued that the Notification No. 41/2012-ST should be interpreted liberally to promote exports by exempting service tax on services used during exports. The Department reiterated the lower authority's orders. The Tribunal noted that similar cases had been addressed in previous decisions, citing a specific case where the Tribunal upheld the Commissioner's decision that rebate claims need not be determined shipping bill wise. The Tribunal analyzed the relevant paragraphs of the Notification to clarify the procedure for claiming rebates and highlighted that claims could cover multiple shipping bills without the need for individual claims per bill.

The Tribunal found that the Commissioner (Appeals) had thoroughly addressed all issues and followed Tribunal decisions. Rejecting the Revenue's appeals based on the Commissioner (Appeals) order, the Tribunal allowed the appellant's appeal, setting aside the impugned order except for the ?28,575/- already allowed by the Commissioner (Appeals).

In conclusion, the Tribunal allowed the appellant's appeal, emphasizing the liberal interpretation of the Notification to facilitate rebate claims for service tax paid on specified services used for export of goods. The Tribunal's decision was pronounced in open court on 24.08.2018.