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2014 (8) TMI 263 - AT - Service TaxRefund of service tax - input service received and used in respect of export of goods - services of transport of export goods through national waterway, inland water and coastal shipping - Notification No. 17/2009 dated 07.07.2009 - Held that - the only ground taken by the learned A.R. for rejection of the refund claim is that Notification 40/2009-S.T. dated 30.09.2009 brought the service of transport of export goods through national waterways, inland water and coastal shipping were made eligible for refund of claim of unutilized CENVAT Credit w.e.f. 30.09.2009. It is not in dispute that the respondent has availed the said transport service and paid service tax thereon in the course of export of goods. Merely on the ground that the goods were exported prior to introduction of Notification 40/09-ST dated 30.09.2009 cannot be denied in the light of the decision of WNS Global Services (P) Ltd. 2008 (1) TMI 94 - CESTAT, MUMBAI wherein it was held that refund of unutilized service tax credit not allowed to provider of output services, neither any conditions, safeguards and limitations provided in respect of provider of output services during relevant period nor any procedure was prescribed for claiming refund of unutilized CENVAT Credit availed on input services used in export of output services. - Decided against the revenue.
Issues:
- Appeal against sanctioning refund claim of unutilized CENVAT Credit - Interpretation of Notification No. 17/2009 for refund of service tax on input service for export of goods - Validity of Notification No. 40/2009 in relation to refund claim for transport services used in export Analysis: The appeal before the Appellate Tribunal CESTAT MUMBAI involved a dispute over the sanctioning of a refund claim for unutilized CENVAT Credit by the respondent. The respondent had filed a claim for refund of service tax paid on input services used for exporting goods during a specific period. The adjudicating authority initially rejected the refund claim citing the provisions of Notification No. 17/2009, which allowed refunds for certain services used for export of goods under Section 65(105) of the Finance Act, 1994. However, the Commissioner (Appeals) overturned this decision and sanctioned the refund claim for transport services used in export. This led to the Revenue appealing the decision. During the hearing, the Revenue argued that the specific transport services used by the respondent did not qualify for refund under Notification No. 17/2009, as they were only included later under Notification No. 40/2009. The Revenue contended that since the export of goods occurred before the introduction of Notification No. 40/2009, the refund claim should be rejected. On the other hand, the respondent's counsel argued that the refund claim should not be denied based on the timing of the export in relation to the introduction of Notification No. 40/2009. The counsel relied on a previous decision and emphasized that the unutilized service tax credit should not be withheld from the provider of output services. After considering the arguments from both sides, the Tribunal analyzed the grounds for rejection of the refund claim. The Tribunal noted that the respondent had indeed availed the transport services and paid service tax on them during the export of goods. The Tribunal referred to the decision in WNS Global Services (P) Ltd. case, which highlighted the entitlement of providers of output services to claim refund of unutilized CENVAT Credit on input services used for export. In this context, the Tribunal found that the respondent was eligible for the refund claim as the input service credit was lying unutilized in the CENVAT Credit account. Consequently, the Tribunal upheld the decision of the Commissioner (Appeals) and dismissed the appeal filed by the Revenue. In conclusion, the Tribunal's judgment clarified the eligibility of the respondent for the refund claim based on the interpretation of relevant notifications and legal precedents, emphasizing the entitlement of providers of output services to claim refunds on unutilized CENVAT Credit for input services used in export activities.
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