Refund under export service tax scheme cannot be denied solely for supplier non-registration under the service category.

Refund under Notification No. 41/2007-S.T. cannot be denied merely because the service provider was not registered under the specific service category, where the service tax was otherwise collected and the exporter's claim satisfied the scheme's requirements. The Board circular clarified that refund eligibility for export-related services does not depend on verifying the supplier's category-wise registration certificate, and that any procedural lapse by the service provider is to be addressed separately. On that basis, non-registration under Business Auxiliary Service did not affect the refund claim, and the denial was treated as unsustainable.

---

---

Issues: Whether refund of service tax paid under Notification No. 41/2007-S.T. could be denied merely because the service provider was not registered under the particular service category.

Analysis: The refund scheme under Notification No. 41/2007-S.T. grants exemption by way of refund for specified taxable services used for export of goods. The relevant Board circular clarified that refund to exporters does not require verification of the supplier's registration certificate for each service category, and that procedural violations by the service provider are to be dealt with separately. The clarification applied squarely to the facts, and the absence of registration under "Business Auxiliary Service" did not affect eligibility for refund where the service tax had otherwise been collected and the claim was in order.

Conclusion: Refund could not be denied on the ground of non-registration under the stated service category, and the denial was unsustainable in favour of the assessee.

---