2017 (3) TMI 567 - AT - Service Tax

Refund claim - N/N. 41/2007-ST dated 06/10/2007 - GTA services - denial on the ground of non-production of certain documents in support of service tax paid on GTA service availed for export of goods - Held that - The service tax paid on GTA service for transport of empty containers in connection with the export of cargo was held to be eligible for refund by the Tribunal in various cases - a perusal of the invoice submitted by the appellant indicates that the export invoice itself contains various details like nature of cargo, lorry and container details alongwith the date of receipt for transport. The appellants submit that they have connected documents to link up payment of service tax to such transport. Accordingly, on submission of the relevant documents, the entitlements of the appellants for refund are to be settled - refund allowed - appeal allowed - decided in favor of appellants.

Summary

Issues:
1. Eligibility of service tax refund on GTA service for transport of empty containers.
2. Non-production of certain documents in support of service tax paid on GTA service for export of goods.

Analysis:

Issue 1:
The appellant, engaged in the manufacture and export of fabrics/yarn, filed claims for refund of service tax paid on services availed during the export process. The dispute revolved around the eligibility of service tax refund on GTA service used for transporting empty containers to the appellant's premises. The appellant argued that the movement of empty containers is integral to the export process and falls within the scope of activities related to export. Citing precedents and tribunal decisions, the appellant contended that the service tax paid on GTA service for transporting empty containers is refundable. The Tribunal, relying on past judgments, held that the expression "in relation to transport of export goods" in the relevant notification is broad enough to cover the transport of empty containers for stuffing goods. Therefore, the Tribunal found the denial of the refund claim on this ground unsustainable.

Issue 2:
The second issue pertained to the non-production of certain documents supporting the service tax paid on GTA service for exporting goods. The appellant claimed to possess all necessary documents, such as export invoices detailing cargo, container numbers, and transport details, along with evidence of service tax payment on the GTA service. Upon reviewing the submitted invoice and related documents, the Tribunal found that the export invoice itself contained relevant details linking the payment of service tax to the transport process. Consequently, the Tribunal concluded that upon submission of the required documents, the appellant's entitlement to the refund should be acknowledged. As a result, the Tribunal set aside the impugned orders and directed the Original Authority to consider the refund claims, taking into account the observations made.

In conclusion, the Tribunal decided in favor of the appellant on both issues, ruling that the service tax paid on GTA service for transporting empty containers is eligible for a refund and that the appellant's submission of relevant documents supports their entitlement to the refund.