2019 (3) TMI 1381 - AT - Service Tax

Refund of service tax paid - GTA Services - exemption in terms of N/N. 25/2012-ST dated 20.06.2012 - Rejection of refund on the ground that the appellants have exported their goods under the claim of rebate and in terms of N/N. 41/2012-ST refund of service tax paid on various services utilized for export purposes would not be admissible - Held that - There are no merits in the reasoning of the Lower Authorities - N/N. 25/2012-ST dated 20.06.2012, as amended by N/N. 3/2013-ST dated on 01.03.2013 exempts the services provided by good transport agents by way of transportation in a goods carriage for foods stuffs including Flours, tea, coffee, jiggery, sugar , milk products, salt and edible oil, excluding alcoholic beverages. There is no dispute that frozen meat is food stuff and transportation of the same stands exempted vide the said notification from payment of service tax. Apart from the fact that GTA service is not one of the specified service in Notification No.41/2012, the applicability of the said notification to the facts of the instant case, as adopted by the Lower Authorities is not justified inasmuch as the Notification No.25/2012-ST is an independent notification. The refund claim having been made in terms of the said notification is required to be adjudged in the light of the wordings of the said notification. Appeal allowed - decided in favor of appellant.

Issues:
1. Rejection of refund claims based on Notification No.41/2012-ST.
2. Interpretation of Notification No.25/2012-ST regarding exemption of service tax on transportation of food stuffs.
3. Applicability of Notification No.41/2012 in conjunction with Notification No.25/2012 for refund claims.
4. Entitlement of the appellant to the refund of service tax on GTA services.

The judgment involves the rejection of refund claims by the Original Adjudicating Authority based on Notification No.41/2012-ST. The appellants, engaged in the manufacture and export of frozen/chilled meat, filed refund claims for service tax paid on GTA services for transportation. The rejection was due to the appellants claiming rebate benefits under Notification No.41/2012-ST for export, which disallows refund claims for services used for export under rebate. The Commissioner (Appeals) upheld the rejection, leading to the present appeals.

The Tribunal analyzed the impugned order and found the rejection of refund claims solely based on the appellants exporting goods under rebate, as per Notification No.41/2012-ST. However, the Tribunal disagreed with this reasoning. It highlighted that Notification No.25/2012-ST, exempting services by good transport agents for transportation of food stuffs, including frozen meat, was applicable. The Tribunal noted that frozen meat qualifies as a food stuff under the notification, acknowledging the appellants' entitlement to the exemption.

The Tribunal further scrutinized the application of Notification No.41/2012 in conjunction with Notification No.25/2012 for refund claims. It emphasized that GTA services were not specified under Notification No.41/2012, and the Lower Authorities' interpretation was unjustified. The Tribunal clarified that Notification No.25/2012 is an independent notification, and the refund claim should be assessed based on its provisions. Since the notification allows exemption for transportation of food stuffs, including frozen meat, the Tribunal concluded that the appellants were entitled to the refund of service tax paid on GTA services.

In the final decision, the Tribunal set aside the impugned order and granted all appeals in favor of the appellants. The judgment highlighted the applicability of Notification No.25/2012-ST for exemption on transportation of food stuffs, emphasizing that the appellants met the criteria for refund of service tax paid on GTA services. The ruling provided consequential relief to the appellants, affirming their entitlement to the refund.

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