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2015 (10) TMI 230 - AT - Service TaxDenial of refund claim - Service Tax used in the export of the goods - Held that - as per Rule 3 of Cenvat Credit Rules, 2004, the appellant is entitled to take credit of duty/Service Tax paid by them. Moreover, Notification No. 17/2009-S.T., dated 7-7-2009 also provided exemption claimed by the exporter shall be provided by way of refund of Service Tax paid on the specified service used for export of the said goods. Admittedly this is specified service as per Notification No. 17/2009-S.T., dated 7-7-2009 the Service Tax has been paid by the appellant. Therefore, this contention of the ld. AR is not acceptable. In the circumstances, I hold that the appellant is entitled to claim refund on actual Service Tax paid on Inland Haulage Service Charges and GTA service. Service provider in India was required to be delivered the goods outside India at the destination of the buyers, the charges on the services have to be formed part of the price of the goods in question. Therefore, I hold that the appellant is entitled to claim refund of Service Tax on these services. With regard to learned AR s contention that the appellant has never said that the goods sold were under the ownership of the appellant till they reached to foreign buyers. With regard to courier service charges, I find that the invoices have been raised by M/s. TMT Logistics Pvt. Ltd. for providing courier service through Fedex for transporting the goods and Service Tax has been paid thereon. Therefore, I hold that the appellant is entitled to claim refund of Service Tax paid on courier service wherein the invoices showed that the appellant has paid Service Tax. - Decided in favour of assessee.
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.
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