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2022 (4) TMI 991 - AT - Service TaxCENVAT Credit - input services - transportation expenses from the factory to the gateway port - packing and forwarding expenses - CHA services - banking and financial services - terminal handling charges etc. - place of removal - HELD THAT - The appellant is registered with the Service Tax Department and they had applied for refund of service tax of ₹ 1,11,244/- under Notification No. 41/2012-ST, with refund application filed in form A-1 on 19.08.2013. As it is the scheme of the Government not to export taxes, to nullify the service tax suffered by the appellant exporter, they are entitled to refund of service tax paid in the course of manufacture and export of their goods - Further, it is found that Government of India in IN RE NOV SARA INDIA (P) LTD. 2013 (7) TMI 102 - GOVERNMENT OF INDIA , had clarified that in case of export of goods on CIF/CF basis, the place of removal is the port of export. It is found that the Court below has refused refund of service tax as it appeared to them that the place of removal is the factory gate of the appellant manufacturer. Considering the facts and circumstances and taking notice of the clarification by the Government of India with regard to place of removal in the case of export, it is held that the appellant is entitled to refund of service tax paid on the services received in course of export like - terminal handling charges, transportation of goods from factory to ICD and from ICD to gateway port of export, CHA services and banking financial services, clearing and forwarding services, used by the appellant as an exporter, comprised in the amount of refund claim of ₹ 1,11,244/-. The Adjudicating Authority is directed to grant the refund within a period of 45 days from the date of receipt / service of a copy of this order alongwith interest under Section 11BB of the Central Excise Act - appeal allowed - decided in favor of appellant.
Issues:
Refund of service tax under Notification No. 41/2012-ST for export-related services. Detailed Analysis: Issue 1: Eligibility for Refund The appellant, a manufacturer of exported goods, applied for a refund of service tax under Notification No. 41/2012-ST for services used in the export process. The appellant utilized various services such as transportation expenses, packing, CHA services, and terminal handling charges till the port of export. The Government clarified the place of removal in the case of export as the port of export, contrary to the Court's view that it was the factory gate. The appellant's entitlement to a refund was based on the nullification of service tax suffered during the export process. Issue 2: Impugned Order The impugned order-in-appeal was deemed cryptic and non-speaking as it denied the refund of service tax to the appellant. The order failed to consider the clarification by the Government of India regarding the place of removal in export cases, leading to an incorrect interpretation by the Court below. The appellant's claim for refund of service tax paid on various export-related services was justified based on the clarification provided by the Government. Issue 3: Decision and Direction Considering the facts and circumstances, the Member (Judicial) held that the appellant was entitled to the refund of service tax paid on services used in the export process. The impugned order was set aside, and the Adjudicating Authority was directed to grant the refund within 45 days from the date of the order, along with interest under Section 11BB of the Central Excise Act. The appeal was allowed, providing the appellant with consequential benefits. In conclusion, the judgment allowed the appellant's appeal for the refund of service tax paid on export-related services, emphasizing the importance of the Government's clarification on the place of removal in export cases. The decision highlighted the appellant's entitlement to the refund based on the nullification of service tax suffered during the export process, ultimately setting aside the impugned order and directing the Adjudicating Authority to process the refund promptly.
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