Export service tax refund depends on proving service use in export, not on technical document defects or supplier tax deposit proof.

Refund of service tax on terminal handling charges for export under Notification No. 41/2007-ST is available where the exporter proves procurement of the service and its use in export, and the supporting documents may be accepted in the form available if they substantiate that use. The notification does not require proof that the service provider deposited the tax with the Revenue. Technical defects such as mismatched registration particulars, missing PAN details, or debit notes alone cannot defeat the refund claim when the substantive export nexus is shown. The rejection was set aside and the refund claim remanded for reconsideration on the documentary evidence.

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Issues: Whether refund of service tax paid on terminal handling charges used for export was admissible under Notification No. 41/2007-ST, and whether the refund could be denied on technical deficiencies in the supporting documents or for want of proof that the service provider had deposited the tax with the Revenue.

Analysis: Notification No. 41/2007-ST grants exemption to exporters by way of refund of service tax paid on services used for export. The decisive consideration is whether the assessee can establish procurement of the service and its use in export, and documentary evidence may be accepted in whatever form it is available if it sufficiently proves that fact. The notification does not require proof that the service provider has deposited the service tax with the Revenue. Technical defects such as mismatch in registration particulars, absence of PAN details, or production of debit notes alone cannot defeat the refund claim if the substantive use of the service for export is shown.

Conclusion: The refund claim could not be rejected merely on the stated technical grounds, and the matter required fresh examination of the documents to decide the refund afresh.

Final Conclusion: The impugned rejection was set aside and the refund claim was remanded for reconsideration on the documentary evidence.

Ratio Decidendi: Refund of service tax under the export exemption notification is allowable when the assessee establishes that the services were procured and used for export, and it cannot be denied on technical documentary defects or for want of proof of tax deposit by the service provider.

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