Refund of service tax on GTA services remains admissible where exports are routed through a merchant exporter.

Refund of service tax paid on GTA services under Notification No. 41/2007-ST was held admissible where exports were routed through a merchant exporter. Denial of refund solely because the assessee did not itself export the goods was not accepted, since export through a merchant exporter does not by itself justify rejection of refund of tax actually paid on eligible GTA services. The Revenue's challenge was rejected and the refund remained admissible.

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Issues: Whether refund of service tax paid on GTA services was admissible under Notification No. 41/2007-ST where the export of goods was effected through a merchant exporter.

Analysis: The refund claim was denied only on the ground that the assessee did not itself export the goods and that the exports were routed through a merchant exporter. The same issue had already been decided in the assessee's own case, where it was held that export through a merchant exporter does not by itself justify denial of refund of service tax actually paid on GTA services. Following that determination, no merit was found in the Revenue's challenge.

Conclusion: The refund remained admissible and the Revenue's objection was rejected.

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