Export service tax refund cannot be denied solely because the provider was registered under a different service classification.

Refund under Notification No. 41/2007-ST for terminal handling charges used in export cannot be denied merely because the service provider discharged tax under a different service classification. Circular No. 112/6/2009-ST clarified that the refund scheme covers specified taxable services used for export and that the provider's registration or classification should not be the sole basis for rejection, with any procedural lapse of the provider to be dealt with separately. On the undisputed facts of export, receipt of service, and tax payment, the refund was admissible, while the rejection relating to freight and documentation charges remained undisturbed.

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Issues: Whether refund of service tax paid on terminal handling charges under Notification No. 41/2007-ST could be denied merely because the service provider had discharged tax under a different service category and not under port services.

Analysis: The appellant was an exporter who had used terminal handling services for export of goods. The refund denial rested on the view that the service provider had not been registered under port services. Circular No. 112/6/2009-ST clarified that Notification No. 41/2007-ST grants refund of specified taxable services used for export of goods and that refund is not to be denied by verifying the supplier's registration certificate, with procedural violations of the supplier to be dealt with separately. The factual position of export, receipt of terminal handling services, and payment of service tax by the provider was undisputed.

Conclusion: Refund of service tax paid on terminal handling charges was admissible and the denial on the ground of the service provider's classification was not sustainable.

Final Conclusion: The appeal succeeded only to the extent of terminal handling charges refund, while the rejection of refund relating to freight and documentation charges remained undisturbed.

Ratio Decidendi: Refund under Notification No. 41/2007-ST for taxable services used in export cannot be denied solely because the service provider's tax registration or classification differs, where the service is otherwise established and covered by the notification.

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