2012 (5) TMI 445 - AT - Service Tax

Refund claim - refund claim of Service Tax paid on GTA services on outward freight in relation to transportation of export consignment under Notification No. 41/07 dated 6.10.2007 Held that - expression used in the Notification No. 3/2008 is in relation to transport of export goods . This expression covers the transport of empty container from the factory to place of export of goods.The Tribunal in the case of Tata Coffee Ltd. (2010 - TMI - 204927 - CESTAT, CHENNAI - Service Tax) has held that the expression in relation to transport of export goods is wide enough to cover even transport of empty containers from the yard to the factory for stuffing of export goods. Commissioner (Appeals) is not sustainable in law, the same is set aside and the appeal is allowed

Summary

Issues:
Refund claim rejection for Service Tax on transportation of empty containers in relation to export consignment under Notification No. 41/07.

Analysis:
The appellant filed an appeal against the rejection of their refund claim for Service Tax paid on GTA services related to the transportation of export consignment. The lower authorities denied the refund claim, citing that it included the transportation of empty containers from the container yard to the factory premises and from the factory premises to the port of export. The appellant argued that an amendment to Notification No. 41/2007 added empty containers for services provided to exporters in relation to the transport of export goods. They emphasized that the expression 'in relation to export' in the notification entitled them to a refund for the to and fro movement of both empty and stuffed containers. The appellant also referred to a relevant case law to support their contention.

The learned Counsel highlighted the amendment to the notification and the broad interpretation of the expression 'in relation to transport of export goods.' They relied on a previous case involving Tata Coffee Ltd., where it was held that this expression encompassed the transport of empty containers for stuffing export goods. On the other hand, the SDR reiterated the lower authorities' findings without providing additional arguments.

After carefully considering the submissions and reviewing the records, the judge found that the appellants had indeed paid Service Tax for the to and fro movement of containers. The judge noted that the expression 'in relation to transport of export goods' in the amended notification covered the transport of empty containers from the factory to the place of export. Citing the precedent set in the Tata Coffee Ltd. case, the judge concluded that the lower authority's decision was not legally sustainable. Consequently, the judge set aside the Commissioner (Appeals) order and allowed the appeal with consequential relief. The judgment was dictated and pronounced in court.