2018 (10) TMI 169 - AT - Service Tax

Refund of Service tax paid - rejection of refund on the ground of violation of conditions of N/N. 52/2011-ST, dated 30.12.2011 as there is absence of any co-relation between the mentioning of export invoices on the invoices raised by GTA service provider - Held that - There is a definitive of the co-relation of the goods cleared from the factory premises and transported for export by transporters. Just because the transporter s documents did not indicate the invoice number of the appellants vide which the goods were cleared, should not be the reason for denying appellant from the benefit he is legitimately due - Undisputedly, appellant herein is eligible for refund of the amount of service tax paid on the transport services for the goods sought to be exported. Hon ble High Court of Delhi in the case of Wipro Limited vs. Union of India 2013 (2) TMI 385 - DELHI HIGH COURT has taken a view that the condition mentioned in the notification if can be satisfied by co-relation, the benefit should not be denied to an assessee. Refund allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Refund claims rejection based on lack of clarity and co-relation between goods exported and movement to port.

Analysis:
The appeals were against the rejection of refund claims by the appellant. The issue revolved around the refund of service tax paid by the appellant to a service provider for goods exported. The adjudicating authority initially allowed the refund claims, but the Revenue appealed, leading to the first appellate authority setting aside the orders-in-original. The first appellate authority found a lack of justification for the refund claim due to a violation of conditions specified in a notification. Specifically, the condition required documents indicating the connection between the exported goods and their movement to the port. The lack of clarity and co-relation between export invoices and invoices raised by the service provider led to the rejection of the refund claim.

During the hearing, the appellant produced documents to establish the co-relation between the goods cleared from the premises and transported for export. Upon careful verification of the documents, it was found that there was a clear connection between the goods exported and the transport services. Even though the transporter's documents did not explicitly mention the appellant's invoice number, the co-relation was evident from the shipping bill numbers and container numbers. The Tribunal referenced a previous case and a High Court judgment to support the view that if co-relation could satisfy the conditions, the benefit should not be denied to the assessee. Given the definitive co-relation found in the documents, the Tribunal held that the appellant was eligible for the refund of service tax paid on transport services for the exported goods. Consequently, the impugned orders were deemed unsustainable and set aside, allowing the appeals with consequential relief.

In conclusion, the Tribunal overturned the rejection of the refund claims, emphasizing the importance of establishing a clear co-relation between the goods exported and the transport services to qualify for the refund of service tax paid. The judgment highlighted the significance of documentary evidence in supporting refund claims and upheld the appellant's eligibility for the refund based on the established co-relation between the goods exported and the transport services utilized.