2017 (5) TMI 1345 - AT - Service Tax

Refund claim - N/N. 41/2007-ST dated 06/10/2007 - denial on the ground that goods have been exported, claiming drawback - Held that - the specified services for which refund is allowable under N/N. 41/2007-ST dated 06/10/2007 as substituted and amended, read with N/N. 33/2008-ST dated 07/12/2008 read with N/N. 80/2006-Cus. (NT) dated 13/07/2006, the refund of Service tax is available in spite of claiming drawback - appellant will be entitled to refund under N/N. 41/2007-ST dated 06/10/2007 - appeal allowed - decided in favor of assessee.

Summary

Issues:
1. Rejection of refund claim under Notification No.41/2007-ST dated 06/10/2007.

Analysis:
The appellant, engaged in the manufacture and export of Readymade Garments & Textile Made Ups, filed two refund claims for Service tax paid on specified services utilized in the course of export under Notification No. 41/2007-ST. The claims were rejected initially, leading to appeals and subsequent remand by the Commissioner (Appeals). The Tribunal set aside the Order-in-Appeal and remanded the matter back to the Commissioner to address the refund claim in accordance with the law.

Subsequently, the Commissioner (Appeals) dismissed the appeals upholding the rejection of the refund claims. The appellant appealed to the Tribunal against the rejection, arguing that the specified services for which refund is sought under Notification No.41/2007-ST are still eligible for refund despite claiming drawback, as per relevant notifications.

The Tribunal, after considering the arguments, held that the specified services for which refund is allowable under Notification No.41/2007-ST, along with subsequent amendments and notifications, are eligible for refund even if drawback is claimed. Therefore, the appeals were allowed, and the impugned orders were set aside. The Adjudicating Authority was directed to grant the refund within 60 days along with interest as per rules from the date of receipt of the order.

Additionally, the Tribunal dismissed the appeal filed by Revenue as infructuous. The judgment emphasized the eligibility of the appellant for the refund under the specified notification, despite the issue of claiming drawback, and directed the Adjudicating Authority to process the refund promptly.