Refund of Service Tax for export-related services cannot be curtailed merely because exported quantity is lower than shipping bills.

Refund of Service Tax paid on services used for export of goods under Notification No. 17/2009 could not be denied or reduced merely because the quantity exported was less than the quantity shown in the shipping bills. CESTAT held that entitlement depended on whether the services were actually used for export, and the notification contained no basis for proportionate curtailment on the suggested ground. The claimed refund was therefore allowable in full, and the Revenue's objection based on lesser export quantity was rejected.

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Issues: Whether refund of Service Tax paid on services used for export of goods under Notification No. 17/2009 dated 07.07.2009 could be denied or reduced on the ground that the quantity exported was less than the quantity shown in the shipping bills.

Analysis: The Notification allowed refund of Service Tax paid on services availed by an exporter and used for export of goods. The Tribunal found that the entitlement turned on whether the services were used for export of goods. It noted that there was no provision denying proportionate refund merely because part of the quantity reflected in the shipping bills was not exported. Since the notification itself clearly covered services used for export, the claimed refund could not be restricted on the suggested basis.

Conclusion: The assessee was entitled to the refund, and the Revenue's objection based on lesser export quantity was rejected.

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