whether refund will be allowed on Terminal Handling, CHA and banking servicesused for export?

PJ/CASE LAW/2015-16/2966

Case:-CYRSTALLINE EXPORTS LTD. VsCOMMISSIONER OF SERVICE TAX, MUMBAI

Citation :-2015 (37) S.T.R. 778 (Tri. - Mumbai)

Brief Facts:-The brief facts of the case are that the appellant filed a refund of the input service credit paid by them on the services namely Terminal Handling Charges, CHA and banking charges. The lower authorities rejected the refund claim on the premise that all these services are not defined as Port Service and service tax has not been paid by the appellant on the Port Service. Therefore, the appellant is not entitled for Service Tax refund of the input service credit. Aggrieved the appellant is before them.
Considering the fact that in the impugned order, the refund to the services availed by the appellant on Terminal Handling Charges have been denied on the premise that same does not qualify as Port Charges but as per the C.B.E. & C. Circular No. 112/6/2009-S.T., dated 12-3-2009 where it has been clarified that if it is not in dispute that the service availed by the assessee is in the course of their business of export and the assessee has paid the service tax thereon, therefore it is not required to examine under which category the service tax provider has paid the service tax.

Appellant’s Contention:-None appeared on behalf of the appellant but a request has been received that the appeal be decided on merits after considering the grounds of appeal.

Reasoning of judgement:-In these circumstances, as per the said C.B.E.C. circular dated 12-3-2009, as it is not disputed that the appellant has used these service in the course of business of export, and they have paid the service tax thereon, therefore, the appellant are entitled for refund claim. Accordingly, they set aside the impugned order qua rejecting the claim on account of input service on terminal handling charges and allow the appeal with consequential relief.

Decision:- The appeal is allowed.

Comment:- The crux of the case is thatNotification No. 41/2007-ST, dated 06.10.07 grants refund of service tax paid on post-manufacture services utilised for export of goods. Further as per the C.B.E.C. Circular No. 112/6/2009-S.T., dated 12-3-2009, it has been clarified that if it is not in dispute that the service availed by the assessee is in the course of their business of export and the assessee has paid the service tax thereon, no need to examine under which category the service tax provider has paid the service tax. Therefore in the present case refund has been allowed on the ground that the appellant has used these services in the course of business of export.

Submitted By:- Somya Jain

Comments

PJ/CASE LAW/2015-16/2966

Post a Comment

Query