2017 (7) TMI 291 - AT - Service Tax

Refund claim - various services like original document, manual documentation, business auxiliary service, business support service, express release fees and B.L. charges etc. - denial of refund claim on the ground that these are not port services - Held that - In case of similar issue the Tribunal in the case of Pacific Exports V/s CCE Ahmadabad 2011 (2) TMI 369 - CESTAT, AHMEDABAD has observed that Revenue should examine invoices/other documents to find out if Service Tax was paid in the relevant budget head of port services or not - matter requires fresh consideration. Refund claim - denial on the ground that it was a claim of VAT instead of Service Tax - Held that - The appellant submits that it was a typographical error in the invoice and actually it is Service Tax amount. When it is so, this matter also needs fresh examination at the end of Original Adjudicating Authority, who shall examine the matter afresh after giving opportunity of personal hearing to the appellant. Appeal allowed by way of remand.

Summary

Issues Involved:
1. Rejection of refund claims related to Service Tax paid on input services for export of goods under Notification No.17/2009 ST.
2. Consideration of computer-generated original invoices.
3. Rejection of refund claims for various services categorized as 'port services'.
4. Denial of refund claim for VAT instead of Service Tax.

Analysis:

Issue 1: Rejection of refund claims under Notification No.17/2009 ST:
- M/s Lucid Colloids Ltd. appealed against the rejection of refund claims for Service Tax paid on input services for export of goods under Notification No.17/2009 ST.
- The Original Adjudicating Authority and Commissioner (Appeals) partially allowed the refund claim, but certain claims were rejected.
- The Tribunal remanded the matter to the Original Adjudicating Authority to examine computer-generated original invoices and sanction the refund if admissible under the law.

Issue 2: Consideration of computer-generated original invoices:
- The appellant argued that computer-generated original invoices were submitted but not considered by the Revenue.
- The Tribunal held that in the digital era, where paperless working is prevalent, Revenue should accept such invoices unless there is evidence challenging their contents.
- The impugned order was set aside, and the matter was remanded for the Original Adjudicating Authority to review the E-invoices and sanction the refund if eligible.

Issue 3: Rejection of refund claims for services under 'port services' category:
- The appellant filed refund claims for services like manual documentation, business support service, and express release fees under 'port services'.
- The Revenue rejected these claims, stating they were not covered under port services.
- Citing a previous Tribunal decision, the Tribunal directed a fresh examination by the Original Adjudicating Authority to determine if Service Tax was paid under the relevant budget head for port services.

Issue 4: Denial of refund claim for VAT instead of Service Tax:
- The appellant's refund claim of ?5,839 was denied, stating it was a claim for VAT amount, not Service Tax.
- The appellant clarified it was a typographical error, and the amount was actually Service Tax.
- The Tribunal ordered a fresh examination by the Original Adjudicating Authority, providing an opportunity for a personal hearing to rectify the error.

Conclusion:
- The Tribunal modified the impugned order, allowing the appeal by remanding it to the Original Adjudicating Authority for a fresh decision on the issues raised.
- The Original Adjudicating Authority was directed to reconsider the matter in light of the Tribunal's observations, providing an opportunity for a personal hearing and document submission to the appellant.