2021 (12) TMI 2 - AT - Service Tax

Refund claim - exclusion of export invoices worth ₹ 24,72,12,897/- from the turnover - rejection on account of necessary documents / certificates evidencing the foreign inward remittances - HELD THAT - The impugned order is set aside and consequently, I deem it proper that the Adjudicating Authority shall look into these documents and then pass appropriate order on the exclusion of turnover pertaining to those export invoices and also pass appropriate order on the refund claim of the appellant after hearing and considering all such documents that may be furnished in support, by the appellant. Appeal allowed by way of remand.

Summary

Issues:
Exclusion of export invoices from turnover for refund claim.

Analysis:
The judgment revolves around the exclusion of export invoices worth a specific amount from the turnover, leading to the rejection of a refund claim. The Adjudicating Authority and the First Appellate Authority had both upheld the partial rejection of the refund claim due to the appellant's failure to provide FIRCs related to the invoices. The appellant argued that their banker had issued a confirmation statement confirming the receipt of foreign remittances corresponding to the invoices in question. The appellant's Chartered Accountant requested a remand to verify the newly submitted certificates from the banker. The Departmental Representative acknowledged the new documents but emphasized the need for verification by the Original Authority.

The Member (Judicial) of the Appellate Tribunal agreed with both parties and set aside the impugned order. The case was remanded back to the Adjudicating Authority for a thorough examination of the documents provided by the appellant's banker. The Adjudicating Authority was instructed to consider all the furnished documents and make a decision on the exclusion of turnover related to the export invoices, as well as the refund claim, after due consideration and hearing. The appeal was allowed by way of remand, providing an opportunity for the Adjudicating Authority to review the case based on the new evidence presented.

This detailed analysis of the judgment highlights the key issues, arguments presented by both parties, the decision of the Appellate Tribunal, and the instructions given for further proceedings regarding the exclusion of export invoices from turnover and the refund claim.