Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (10) TMI AT This

  • Login
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2015 (10) TMI 230 - AT - Service Tax


Issues:
Appeal against denial of refund of Service Tax for export of goods.

Analysis:
The appellant, a manufacturer of polyester films, filed a refund claim for Service Tax paid on services used for exporting goods, including Inland Haulage Charges, GTA charges, Ocean Freight charges, On-Carriage Charges, THS (Destination) Charges, Carrier Security Services, and Courier Service Charges. The appellant argued that they are entitled to input Service Tax refund as they deliver goods to the foreign buyer's destination, incurring expenses forming part of the selling price. The appellant contended that they paid Service Tax on the services and are eligible for a refund.

The appellant's counsel argued that the denial of refund on Inland Haulage Charges and GTA service was incorrect as the appellant paid Service Tax on the full value, not just a percentage. Refund was also sought for Ocean Freight, On-Carriage, and Terminal Handling services at the foreign port, as these charges were part of the goods' value. The appellant claimed refund for Courier Service Charges, stating that the service provider paid Service Tax and billed the appellant accordingly.

The Revenue's argument was that services availed outside India are not eligible for Service Tax refund. However, the Tribunal found that since the services were provided in India for delivering goods outside the country, the charges were part of the goods' price. The Tribunal rejected the Revenue's claim that ownership of the goods was not with the appellant until reaching the foreign buyers.

The Tribunal allowed the refund claim for Inland Haulage Charges, GTA service, Ocean Freight, On-Carriage, Terminal Handling services, and Courier Service Charges, where Service Tax was paid. The appellant withdrew the refund claim for Carrier Security Services, which was consequently rejected. The appeal was disposed of in favor of the appellant, granting the refund as claimed.

This judgment clarifies the eligibility for Service Tax refund on services used for exporting goods, emphasizing the payment of Service Tax and the services' connection to the goods' value and delivery.

 

 

 

 

Quick Updates:Latest Updates