2023 (9) TMI 80 - AT - Service Tax

Benefit of Exemption - GTA and commission agent services used for Export of goods - Benefit of N/N. 18/2009-S.T. dated 07.07.2009 - non-compliance with the stipulated condition that original documents reflecting actual payment of commission along with a copy of the contract must be enclosed in terms of paragraph 4 under Col. (4) of Sl. No. 2 of the said Notification - HELD THAT - When the benefit of an exemption Notification is sought to be availed, the Hon ble Supreme Court has held in the case of COMMISSIONER OF CUSTOMS (IMPORT) , MUMBAI VERSUS M/S. DILIP KUMAR AND COMPANY ORS. 2018 (7) TMI 1826 - SUPREME COURT that such exemption Notifications should be construed strictly, that is to say the appellant should strictly adhere to the conditions specified under such exemption Notification. Neither from the pleadings before the lower authorities nor, either in the statement of facts or in the grounds of appeal, do we see any effort being made by the appellant to dislodge the above factual findings of the original authority. There are no merit in the appellant s case - appeal dismissed.

Summary

Issues:
The issues involved in the judgment are the denial of exemption from payment of Service Tax by the Revenue due to procedural lapses in filing necessary documents and details within the stipulated time frame under Notification No. 18/2009-S.T.

Issue 1: Denial of Exemption
The appellant, engaged in the manufacture and export of Full Shoes and Shoe Uppers, utilized services under 'goods transport agency service' and 'business auxiliary service' for export. The Revenue noticed that the appellant claimed exemption from Service Tax for 52 shipping bills, but failed to comply with stipulated conditions, leading to a Show Cause Notice. The original authority confirmed the demand, prompting the appellant to appeal.

Issue 2: Adjudication and Appeal
The first appellate authority upheld the denial of exemption, citing non-fulfillment of conditions specified under the Notification. The appellant argued that the commission was paid only after realizing sale proceeds, causing a delay in filing necessary documents. They contended that the date of dispatch of goods should not be the relevant date for denying exemption, citing procedural lapses common among exporters.

Issue 3: Interpretation of Exemption Notification
The Tribunal highlighted that when seeking exemption under a Notification, strict adherence to conditions is essential. Referring to the Supreme Court's stance on interpreting exemption Notifications strictly, the Tribunal noted that the appellant failed to substantiate their claim for exemption as per the Notification No. 18/2009-S.T.

Conclusion:
The Tribunal dismissed the appeal, emphasizing the importance of fulfilling conditions specified in exemption Notifications. Despite the appellant's argument of procedural lapses, the failure to provide necessary documents within the prescribed time frame led to the denial of exemption from Service Tax. The Tribunal's decision aligned with the strict interpretation of exemption Notifications as mandated by legal precedents.