2017 (1) TMI 382 - AT - Service Tax

Rejection of refund claim - N/N.41/2007-ST dated 06.10.2007 - technical testing and analysis services - Held that - when classification for services was not questioned by the revenue, the denial of refund of service tax paid by them is only thwarted attempt to deny legitimate rights of the respondent for which respondent is correctly entitled to. In their memo of appeal the revenue again reiterated their stand and has simplicitor observed that the order of the lower authorities does not seem to be legal and proper - refund allowed - appeal rejected - decided against Revenue.

Summary

Issues:
Refund claim of service tax for technical testing and analysis services under notification 41/2007-ST.

Analysis:
The appeal was filed by the Revenue against the order of the Commissioner (A) regarding the refund claim of service tax paid on technical testing and analysis services utilized for export. The original adjudicating authority had granted the refund claim, which was challenged by the Revenue. Both authorities noted that technical testing and analysis services were covered under notification 41/2007. It was established that the assessee had a contract with foreign buyers for technical testing before export, and service tax was paid on these services. The Revenue did not contest these facts. The Commissioner (A) upheld the refund, stating that the denial of refund was an attempt to deny the legitimate rights of the assessee. The Tribunal had previously ruled in favor of refunding service tax on technical testing and analysis charges under the same notification.

The Tribunal found no valid reason to interfere with the Commissioner (A)'s decision, as the services tax paid on technical testing and analysis charges were deemed refundable to exporters under notification 41/2007. Therefore, the Revenue's appeal was rejected, affirming the entitlement of the assessee to the refund of service tax paid for the specified services utilized in export.