Tribunal allows refund for Terminal Handling Charges, remands Service Tax claim for payment evidence verification.

The Tribunal set aside the rejection of the refund claim for Terminal Handling Charges, citing precedents supporting their admissibility for export-related services. The rejection of the refund claim for Service Tax on commission paid to foreign agents was remanded for verification of payment evidence, allowing the appellant to present their case. The Tribunal directed a fresh adjudication in accordance with the law, with the rejection of the refund on commission remanded for de novo adjudication.

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Issues:
1. Refund claim rejection on Terminal Handling Charges.
2. Refund claim rejection on Service Tax for commission paid to foreign agents.

Issue 1:
The appellant filed a refund claim for &8377; 2,70,103, out of which &8377; 1,51,087 was sanctioned, and the remaining &8377; 1,19,016 was rejected. The rejection was based on Terminal Handling Charges not specified in Notification No. 41/2007 before 07.07.2009. The Tribunal cited precedents to support the admissibility of such charges for export-related services. The order of the Ld. Commissioner (Appeals) rejecting the refund on Terminal Handling Charges was set aside.

Issue 2:
The rejection of the refund claim for Service Tax on commission paid to foreign agents was based on non-payment at the time of filing the claim. The appellant argued that the delay was due to the nature of the transaction. The Tribunal noted that the Department had sanctioned refunds post-payment in similar cases. The matter was remanded for verification of Service Tax payment evidence, allowing the appellant to present their case. The Tribunal directed a fresh adjudication in accordance with the law. The appeal was disposed of with the rejection of the refund on commission remanded for de novo adjudication.

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