2014 (9) TMI 814 - AT - Service Tax

Refund of service tax - Receipt of Terminal Handling Charges, Documentation Charges and Bill of Lading Charges - Held that - Serial No. 2 of the table annexed to the schedule to the Notification No. 41/2007-S.T. grants exemption to services provided for export of goods and there are no condition attached for claiming the refund. The Board vide Circular No. 112/6/2009, dated 12-3-2009 also clarified that irrespective of the categorization of services under which the taxes have been paid, if the services received are notified in Notification No. 41/2007-S.T., the benefit of refund would be available. This Tribunal in the four cases (cited supra) has also consistently held that refund of service tax paid on Terminal Handling Charges besides Business Auxiliary Services would be available when received in or in relation the export of goods. In view of the above, I do not find any merit in the appeal filed by the Revenue - Decided against Revenue.

Summary

Issues:
Refund of service tax paid on Terminal Handling Charges, Documentation Charges, and Bill of Lading Charges for export of goods under Notification No. 41/2007-S.T.

Analysis:
The appeal was filed by the Revenue against the Order-in-Original passed by the Commissioner of Central Excise, Mumbai, allowing the refund of service tax paid on specific charges utilized in exporting goods. The Revenue contended that the Notification No. 41/2007-S.T. did not provide for a refund on these services until it was amended by Notification No. 17/2009-S.T. The period in question was July 2008 to March 2009, and the Revenue argued that since the goods were exported before the amendment, the refund was not applicable. The respondent, on the other hand, relied on Circular No. 112/6/2009-S.T. to support their claim for refund, stating that the services received were covered under Notification No. 41/2007-S.T. and hence eligible for refund, regardless of the service tax categorization. The respondent also cited previous Tribunal decisions supporting their position on refund eligibility for similar services related to export of goods.

The Tribunal analyzed the provisions of Notification No. 41/2007-S.T. and Circular No. 112/6/2009, emphasizing that services provided for the export of goods were exempted without any conditions for claiming a refund. The Tribunal referred to previous decisions where it was consistently held that the refund of service tax on Terminal Handling Charges and Business Auxiliary Services for export-related activities was permissible under the said notification. Based on the above considerations, the Tribunal found no merit in the Revenue's appeal and dismissed it as lacking in substance.

In conclusion, the Tribunal upheld the Commissioner's order allowing the refund of service tax paid on Terminal Handling Charges, Documentation Charges, and Bill of Lading Charges utilized in the export of goods, citing the provisions of Notification No. 41/2007-S.T. and Circular No. 112/6/2009. The Tribunal also relied on previous decisions to support the eligibility of such services for a refund under the specified notification, emphasizing the consistent interpretation of the law in similar cases.