Export service tax refund admissibility upheld where procedural lapses by the service provider did not defeat the exporter's claim.

Refund under Notification No. 41/2007-S.T. was held admissible for terminal handling charges and Bill of Lading fees used in export of goods, even though the service provider had not paid tax under the exact service category and its registration did not cover the services. The Tribunal accepted the clarification in Circular No. 112/6/2009-ST that exporters may claim refund of specified taxable services actually received and used for exports without verifying the provider's registration certificate. It also followed earlier judicial views that procedural lapses by the service provider do not defeat an otherwise valid exporter refund claim. The Revenue's appeal was dismissed.

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Issues: Whether refund under Notification No. 41/2007-S.T. could be denied on the ground that the service provider had not paid service tax under the exact category of service and that the services were not covered by the provider's registration.

Analysis: The Tribunal noted that the refund claim related to terminal handling charges and Bill of Lading fees used for export of goods. It accepted the interpretation placed on the notification by Circular No. 112/6/2009-ST dated 12.3.2009, which clarified that exporters are entitled to refund of specified taxable services actually received and used for export, without verifying the service provider's registration certificate. The Tribunal also followed the view taken by the Gujarat High Court and other Tribunal decisions that procedural lapses by the service provider are to be dealt with separately and do not defeat the exporter's refund claim if the claim is otherwise in order.

Conclusion: The refund was admissible and the Revenue's appeal was dismissed.

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