2018 (4) TMI 729 - AT - Service Tax

Benefit of N/N. 18/2009 ST dated 07/07/2009 - Transport of Goods by Road - Overseas Commission Agent - export of goods - denial on the ground that the appellant has not produced various documents such as the relevant invoices for verification - Held that - the Notification grants exemption from payment of Service Tax in respect of services received by the exporter of goods and used for such export. The Notification is subject to certain conditions, to the effect that the exporter shall produce the relevant document evidencing their claim that such services have been used for export. The appellant has failed to produce copies of the relevant documents - however, appellant says that the appellant is in possession of all the necessary documents and the same can be submitted once again for verification. Matter remanded to the Original Authority for verification of the documents - appeal allowed by way of remand.

Summary

Issues:
Appeal against denial of benefit of Notification No. 18/2009 ST for service tax exemption on export-related services.

Analysis:
The appellant, engaged in manufacturing manmade blended fabric and exporting goods, appealed against the denial of service tax exemption under Notification No. 18/2009 ST for services used in exports. The authorities below had directed the appellant to pay the service tax, citing lack of relevant document production. The appellant contended that minor procedural lapses should not lead to exemption denial. Both parties presented their arguments.

The appellant's advocate highlighted that the required return in form EX P-2 was filed, providing export details and invoices. She argued that exemption denial for minor procedural lapses was unjust. On the contrary, the Departmental Representative (DR) emphasized that the authorities found the appellant did not submit crucial documents like relevant invoices for verification. The DR insisted that exemption under the notification required document verification.

The Tribunal noted the dispute centered on the appellant's claim under Notification No. 18/2009 ST, which exempts service tax for services used in exports, subject to document submission. The impugned order stated the appellant failed to provide necessary documents. However, the appellant's counsel assured possession of all essential documents for resubmission. Consequently, the Tribunal set aside the order, remanding the matter for document verification by the Original Authority, allowing the appellant to submit any required documents for reconsideration.

Ultimately, the appeal was allowed through remand, granting the appellant an opportunity to present documents for verification and a fresh decision by the Original Authority.